In view of the savings, the discussion about the budget continues – even in the traffic lights. Economics Minister Habeck warns against jeopardizing the laboriously reached compromise. The government spokesman assured that the agreement would be implemented.
The budget compromise has been in place since last week, but some of the measures are highly controversial within the traffic light. Now Vice Chancellor Robert Habeck is warning that the compromise on the austerity package should be canceled. “If individual struts are now pulled out without inserting new ones, the overall solution collapses,” said the Green Federal Economics Minister in an interview with the dpa news agency.
Anyone who wants changes in one place must offer coordinated counter-financing that is viable for all sides. “But we cannot afford not to give an answer because the budget has to be done.”
Government spokesman: Agreement is implemented
The government spokesman also felt compelled to make it clear once again: “The government is firmly determined to implement the agreement,” said Steffen Hebestreit. There is little willingness to change in the government. He emphasized:
It is true, and the Federal Chancellor has said this, the Vice Chancellor has said this and the Federal Minister of Finance also said this clearly on Wednesday in the press statement in the Federal Chancellery, that this is a budget in which cuts will also have to be made. And these cuts also affect areas where it obviously hurts.
Protests from the FDP and SPD
Planned cuts to the federal budget had sparked violent protests. On Sunday, the FDP parliamentary group in the Bundestag announced a veto against the traffic light leaders’ plans to abolish tax breaks for farmers. There is also dissatisfaction from the SPD parliamentary group about the end of the electric car bonus.
The hard-negotiated compromise became necessary after a ruling by the Federal Constitutional Court. The court in Karlsruhe had decided that unspent Corona funds could not be moved to the climate fund.
With regard to the traffic light budget compromise, Habeck spoke of a package that implements the Constitutional Court ruling, was put together on the basis of existing rules and demands something from all sides. “Cuts are hard on people and I would have liked to have avoided it.” He can understand everyone affected who is now disappointed.
In view of demands not to make cuts in certain areas, Habeck said: “What is not possible for politicians is to evade responsibility and only say where no savings should be made.” He defends the compromise, also because he knows “that every cut means hardship.”
No solution for the future of the debt brake
The question of the debt brake only seems to have been resolved for the time being. In an interview with the dpa, Habeck again spoke out in favor of changing the regulation. “It has long been known that I consider the rules of the debt brake, as they stand, to be outdated”: Germany must invest massively “in order to keep up with the global competition for future technologies, and it must make the transition socially just.”
Federal Finance Minister Christian Lindner, on the other hand, insists on compliance with the debt brake. In the Report from Berlin He said it was important to avoid suspending the regulation and increasing taxes. According to Lindner, there was a clear consensus during the negotiations about reinstating or suspending the debt brake – for example in the event that special costs arise from Russia’s war against Ukraine. “With every new situation that comes to us and that is beyond the control of the state and cannot be reflected in the budget, we will of course consider making an exception to the debt brake,” said the FDP politician.
Cuts in support for farmers are causing protests
Concrete savings such as the removal of the tax privilege for agricultural diesel are particularly controversial. The farmers’ association is demanding that the government withdraw its plans to abolish regulations on agricultural diesel and vehicle tax exemptions. The association wants to protest with numerous tractors at the Brandenburg Gate in Berlin. The FDP parliamentary group has already made it clear that it wants to stick to the subsidies, and the Green Agriculture Minister Cem Özdemir has also expressed concerns. Finance Minister Lindner does not want to close himself off from the debate, he explained in the Report from Berlin: “If the Agriculture Minister and the FDP parliamentary group think that this needs to be discussed in the package, it needs to be taken seriously.”
Sharp criticism of the planned cuts comes from the Union. CDU Vice President Silvia Breher said the industry would be burdened with an additional burden of almost one billion euros per year. “This decision does not serve the climate because alternatives are not available to farmers and foresters.” There is neither planning security nor the necessary financial resources for converting animal husbandry.
SPDGroup leader criticize the abrupt end to the electric car bonus
The stop to the state purchase bonus for electric cars is also causing discussion. Three deputy SPD parliamentary group leaders had said that the funding stop until the end of next Sunday, which was announced at short notice by the Ministry of Economic Affairs on Saturday, was “extremely unfortunate”. They had asked Habeck to organize a more reliable transition. “Citizens expect realistic transition periods from political decision-makers,” said parliamentary group vice-presidents Detlef Müller, Matthias Miersch and Verena Hubertz.
Habeck justifies the expiry of the bonus: “I would also like to promote e-mobility with the environmental bonus for longer, be able to use more money for the solar industry or cap the costs of network fees. But I know that other things are important to others.”
So far, according to the ministry, e-car funding was supposed to expire at the end of 2024 – or before if the funds have been used up.
SPD leader suggests increasing the Commuter allowance at
SPD leader Lars Klingbeil also wants to expand the commuter allowance. “I am in favor of us having the debate about raising it,” he said in the “Bild” podcast “Ronzheimer”.
When it comes to the traffic light coalition’s budget compromise, it is clear: “There are burdens for the working middle class. I’m not happy about that either.” Klingbeil specifically mentioned the expected increase in fuel prices. This group must be brought into focus in the second half of the legislative period. The SPD therefore wants “consideration to increase the commuter allowance next year”. However, the SPD leader did not want to commit to an amount.
The commuter allowance is deducted when calculating income tax for the one-way distance between home and work. It is 30 cents per kilometer, from the 21st kilometer onwards 38 cents.