Three years without new social spending and subsidies – that’s what Finance Minister Lindner is proposing. This would allow Germany to invest money in its defense. The Greens reacted less than enthusiastically.
Federal Finance Minister Christian Lindner has called for a multi-year moratorium on social spending and subsidies in order to be able to invest more money in defense. “If we managed to get by with what we have for three years, then that would be a really big step towards consolidation,” said the FDP leader on the ZDF program “Maybrit Illner”.
He’s not interested in getting rid of things. But “there shouldn’t always be new subsidies, new social spending, new standards,” said Lindner. There is already quite a lot of that. More economic growth is necessary in order to have higher tax revenues. “We need dynamic growth,” said Lindner.
Lindner recently spoke out against an increase in citizens’ money. According to his forecast, there could be a zero round in 2025.
“Don’t pit external security against social security within the country”
Opposition to the coalition partner’s plans came from the Greens: “We must not pit external security against social security in the country,” said Green Party leader Ricarda Lang. It will not be possible to finance these tasks from the current budget. “We have to find other ways to do this.”
But Germany must invest more money to support Ukraine and to help make Europe more independent of the USA in defense.
Clemens Fuest, President of the ifo economic research institute, assumes that there will be no way around cuts in the social sector. “Cannons and butter – that would be nice if that were possible. But that’s the land of milk and honey. That’s not possible. But cannons without butter.” The welfare state will continue to be financed, “but it will just be smaller.”
Lindner: Don’t pay subsidies with borrowed money
In an interview with the daily topics Lindner also commented on the economic policy of the traffic light. There are things that need to be discussed, he would like this to happen within the government, said Lindner.
Other countries around Germany have reduced the tax burden on the economy, “Germany has not for many years.” What is lacking is private investment. It shouldn’t be the case “that the state pays subsidies to the economy with borrowed money, but rather the economy should be successful on the world market so that our state is financed.”
The labor market must be mobilized and bureaucracy must be reduced even more drastically than planned. “Germany has become too expensive,” Linder continued.
Hans-Joachim Vieweger, ARD Berlin, tagesschau, February 23, 2024 7:09 a.m