The SPD dares to test the strength of the FDP in the dispute over the solution to the budget crisis. On Saturday, the federal party conference in Berlin unanimously approved an initiative proposal drawn up at short notice by the party leadership, to the applause of the 600 delegates. Accordingly, the federal government should declare an emergency for 2024 because of the war in Ukraine and its consequences. This would in turn allow the debt brake to be suspended again and more money to be spent.
Chancellor Olaf Scholz (SPD) should now strive for this in the negotiations. The SPD wants to ensure that support for Ukraine continues, a dismantling of the welfare state is avoided and the ecological restructuring of the economy and industry is still possible. In mid-November, the Federal Constitutional Court declared the reallocation of 60 billion euros of unused Corona funds to a climate and transformation fund (KTF) to be unconstitutional. These are now missing for the coming years. Scholz, Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) have been trying to find an agreement for weeks. The budget for 2024 can no longer be passed by the Bundestag this year due to the difficult negotiations.
“The transformation to a climate-neutral and digital economy must succeed exactly once in Germany. That time is now,” says the lead motion. This was developed on the sidelines of the party conference. The SPD wants to oppose the FDP. This would like to save around 17 billion euros in the core budget for 2024 alone, instead of taking on more debt than allowed by the debt brake. Lindner says that he is not yet convinced that the constitutional requirements for declaring an emergency are actually met again – and otherwise one risks defeat again.
Application for more debt agreed with Scholz
After leading Social Democrats have called for it and Scholz has indicated it, the party congress – the highest decision-making body of the Social Democrats – is now demanding that an emergency be recognized for 2024. Party circles said the application had been agreed with Chancellor Scholz. Similar applications from Saarland and North Rhine-Westphalia were included in the application. If the FDP and its chairman Lindner oppose this, it could bring the traffic light coalition closer to a break.
“The actions of an aggressive autocrat in war are not only beyond the control of the German state, but also significantly affect the financial situation of the federal government and other public budgets,” the motion emphasizes, referring to Russian President Vladimir Putin. “Politically, from our perspective, the prerequisites for an emergency situation are met, which enables increased borrowing to deal with the consequences of the Russian war of aggression on Ukraine.”
However, it is emphasized here that the “political” prerequisites for an emergency are present from the SPD’s perspective, but the FDP emphasizes that this must also be met legally.
The SPD demands in its political emergency resolution that constitutionally stipulated leeway for the budget must be used in the interests of the population. We will continue to invest in a strong country and protect social cohesion instead of putting Germany’s future at risk.” A revised budget draft for 2024 will be presented as soon as possible. “Our goal is to quickly create planning security, as this also includes concrete projects and support structures hang.”
Regardless of the short-term decisions for the 2024 budget, we are also calling on all responsible parties in Germany to “work with us on further developing the debt brake for the coming years and decades.” According to a resolution by the party congress, this should be reformed in such a way that future investments amounting to billions of euros should continue to be possible through greater debt flexibility.
Reference is also made to huge settlement and economic stimulus programs in the USA, for example, through the Inflation Reduction Act of the government of US President Joe Biden. The Jusos also pushed through a resolution for a wealth levy on particularly wealthy citizens, but this has so far been impossible to enforce in the traffic light coalition with the FDP and the Greens, as have other attempts to redistribute more.
Juso boss Philipp Türmer in particular had previously called for Scholz to be more assertive in the traffic light coalition, especially against the FDP. The people “didn’t want a moderator of power,” said Türmer. He is the head of the government and “not Robert and Christian’s couples therapist.” Scholz once said, “If you order a tour from me, you’ll get it.” Now Türmer said to Scholz: “I hereby order leadership.”