Industry Day: Scholz calls for budgetary discipline

Status: 06/19/2023 3:30 p.m

Security, climate neutrality, cohesion – these are the priorities now, said Chancellor Scholz at Industry Day. After spending billions as a result of the crisis, spending would have to be reduced to a normal level.

In view of the difficult negotiations on the next federal budget, Chancellor Olaf Scholz has called for budgetary discipline. Germany is gradually returning to the “fiscal policy normality” before the Corona crisis and before the energy crisis, said Scholz at the Industry Day in Berlin. “Our budgetary policy for the coming years follows this logic.”

After the billions in expenditure caused by the crisis, spending would be reduced to a level that had been easy to cope with for years before the crises. Germany’s security is a priority, said Scholz, referring to the Bundeswehr. In addition, Germany should become climate-neutral and remain a strong industrial country. It is also important that social cohesion is maintained.

subsidies under scrutiny

“Conversely, this also means that some subsidies and some programs are in focus,” says Scholz. There will be criticism of that. “But after unprecedented years of crisis with unprecedented borrowing, it is our duty to lead our country into the future on a solid footing.” This is the only way to give future generations the scope they were able to use in the recent times of crisis.

Finance Minister Christian Lindner had sent letters to the ministries in which he specified how much money each department could spend in the coming year. Together with Scholz, the FDP politician had held talks with the department heads. The debt brake enshrined in the Basic Law is to be complied with again. According to information from the Ministry of Finance, around 20 billion euros are missing from the budget. Accordingly, savings should be made – although many ministries actually wanted to spend significantly more.

In the middle of the “turning point in the future”

Scholz defended the course of the federal government in energy policy. “Germany’s transformation plan is in place,” said the SPD politician. The country is in the middle of the “turning point in the future”. The federal government is working on converting the energy system and building a hydrogen infrastructure. The costs of generating energy from wind and sun are already significantly lower than those from all other forms of energy. “And if we were to expand wind power in the south and west where we are in the north and east, and if we already had the necessary networks, then we would already have significantly lower energy costs throughout Germany,” the Chancellor continued.

Criticism of the course of the coalition

Industry President Siegfried Russwurm criticized the federal government. The “delta” between ambitions and practical implementation is getting bigger every day. “Some things are going completely in the wrong direction,” which is causing the industry serious concerns. Russwurm called for less regulation and more speed for planning and approval processes to become faster.

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