Meeting of the traffic light parties: talks on the 2024 budget will probably be postponed

As of: December 11, 2023 1:59 a.m

In the evening, the traffic light parties in the Chancellery negotiated the 2024 federal budget again – apparently without any result. According to consistent media reports, the talks will continue today.

The leaders of the traffic light coalition have again interrupted talks on the 2024 budget. According to information from the news agencies Reuters and dpa, the negotiations were postponed until today late in the evening.

Nothing is yet known about the course of the talks for which Federal Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) met in the Chancellery that evening. For days they have been trying to find a solution to the budget gap caused by the Federal Constitutional Court’s ruling.

SPD for new emergency in the budget

At the weekend, the SPD called for a renewed budget emergency to be declared in order to suspend the debt brake because of the Russian war of aggression in Ukraine.

“We will continue to support Ukraine. We will continue to accept people seeking protection from Ukraine,” said SPD leader Saskia Esken at the party conference this weekend. “This is a special situation. And we really have to provide the financial resources for it.” At the same time, it would be about how “long-term generational tasks” could be financed. “It won’t work from the normal budget,” says Esken.

The FDP has so far rejected this and is primarily focusing on savings. The SPD, for example, rejects this. At the SPD party conference, Chancellor Scholz made it clear: “It is very clear to me that in such a situation there will be no dismantling of the welfare state in Germany.”

Dismantling of climate-damaging Subsidies?

Another controversial point is increasing government revenue. Here too, the SPD and the Greens agree: They do not want cuts in the social sector, but – unlike the FDP – they could imagine reducing so-called climate-damaging subsidies.

“The Federal Environment Agency speaks of a total of over 60 billion in environmentally harmful subsidies,” says the leader of the Green Party, Katharina Dröge. “Not all of them can be dismantled, but a relevant part can, so it is a contribution to this overall package.”

Wissing doubts the figures on subsidies

FDP Transport Minister Wissing expressed doubts about the figures from the Federal Environment Agency. The technically responsible ministry is the Ministry of Finance. “They come up with completely different numbers. They come to the conclusion that, for example, when it comes to company car taxation, the switch from the one percent flat rate to kilometer-based billing only makes a marginal difference.”

He also rejected a reform of diesel taxation. “You have to look at it carefully, but putting a burden on commuters who would be hit hard at the moment if they can’t afford to switch to an electric car – I don’t think that’s a very social idea.”

With information from Uli Hauck, ARD Berlin

Uli Hauck, ARD Berlin, tagesschau, December 11, 2023 12:05 a.m

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