Politicians continue to discuss the relief package. How will the 65 billion euros be financed? There are different approaches and still no uniform line.
FDP General Secretary Bijan Djir-Sarai has warned the coalition partners against continuing to present uncoordinated ideas for spending taxpayers’ money to deal with the crisis. This will not last long, said Djir-Saai of the German Press Agency. “In the current, difficult situation, it is extremely important that all parts of the government meet their responsibilities without partisan tactics,” he demanded. The citizens expected that.
“The debt brake urgently needs to be complied with again from next year. Ever higher debts are fueling inflation. Therefore, the focus must be on curbing rising prices and inflation,” said Djir-Sarai. The return to fiscal stability is also a question of intergenerational equity. “In addition, we should stick to the agreements made by the coalition committee and the Economics Minister should connect nuclear and coal-fired power plants so that Germany does not slide into a supply crisis,” he said. “In any case, we can’t lose any more time.”
Taxpayers’ Association: States should help finance relief
In the discussion about the financing of the third relief package, the taxpayers’ association also sees the states as having an obligation. “The current crises must be mastered at the national level, which is why the federal states must not leave the federal government alone,” said the President of the Taxpayers’ Association, Reiner Holznagel, the newspapers of the Funke media group (Tuesday). In addition, most federal states would have budget surpluses to show for this summer. Holznagel reminded that the debt brake is the constitutionally binding general standard for budgetary policy and a contribution to intergenerational justice.
The debt brake stipulates that the budgets of the federal and state governments are to be balanced without income from loans. There is, however, a leeway that for the federal government amounts to a maximum of 0.35 percent of gross domestic product. In the event of natural disasters or other emergency situations, the debt brake can be suspended – this has now happened three years in a row because of the corona pandemic.
In connection with relief in the energy crisis, the Greens, among others, had brought a further suspension of the debt brake into play. Federal Finance Minister Christian Lindner (FDP) wants the regulation to apply again from 2023.
Financing of the relief package disputed
On the other hand, the economist Achim Truger told the “Rheinische Post” (Tuesday): “Christian Lindner has to suspend the debt brake again because of the acute crisis situation in 2023.” The 2023 budget is already sewn to the brim, but two central measures are still missing in the relief packages. Truger mentioned the gas price cap and help for companies, which together could well cost the mid double-digit billions. “It would be fatal if these measures, which are urgently needed to support people and the economy in Germany, were sacrificed to a financial symbol.” In this situation, Germany can and must afford higher debts, said Truger.
The traffic light coalition has decided on a relief package worth 65 billion euros, in which the federal states should also participate. A dispute has broken out between the federal and state governments over funding, and individual states are threatening blockades in the Bundesrat. Truger said that the financial situation of the states is currently better than that of the federal government. “However, combating the crisis is already a federal task, and it requires at least coordination with the federal states, as in the past in the Financial Planning Council.”
Source: Stern
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