On Friday night, the budget holders in the Bundestag finalized the budget for 2024. The Ministry of Finance is planning significantly more money for Ukraine. Other projects, however, are still being contested.
The federal government wants to significantly increase the budget for military aid for Ukraine next year. Instead of the originally estimated four billion euros, the budget for 2024 now includes eight billion euros. This emerges from a submission from the Ministry of Finance that was sent to the Bundestag’s Budget Committee on Monday evening and is available to the German Press Agency. Several media outlets reported about it.
The additional funds are intended “for further support of Ukraine and, in particular, to ensure the recovery of Bundeswehr material that was given to Ukraine.”
Two billion euros in commitment appropriations
In addition, the so-called commitment appropriations for military support for Ukraine attacked by Russia are to be increased by two billion euros. This involves expenses that will only be reflected in the following years. A total of six billion euros is now earmarked for the financial years 2025 to 2028.
Defense Minister Boris Pistorius (SPD) confirmed the plans. “Yes, the eight billion can come. I hope they come,” he said on Tuesday at a meeting of EU defense ministers in Brussels. An attempt was made to get this started, but of course Parliament had to decide.
The Bundestag’s budget committee will meet on Thursday for a so-called adjustment meeting to make the final changes to the draft budget for 2024. The final decision in the Bundestag is scheduled for December 1st.
What is not included in the Treasury template
Projects controversial in the traffic light coalition, such as a permanent reduction in VAT for the catering industry or new funds for civil sea rescue in the Mediterranean, are not included in the Finance Ministry’s proposal. They will probably be discussed at the latest in the resolution meeting.
Apparently no decision has yet been made about increasing the share pension. There are also no plans for an increase in citizen’s money that may be necessary in 2024 following additional costs in the current year.
However, it does contain the electricity price package for the economy presented last week by Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP). To date, 2.6 billion euros have been deposited in the climate and transformation fund for grants to electricity-intensive companies. Now almost 1.3 billion will be added, with which, among other things, the so-called super cap will be financed, a special aid for the 90 most electricity-intensive companies.
Economic Stabilization Fund is not being utilized
The federal government needs far less money for energy price caps. The economic stabilization fund, which is equipped with loans of up to 200 billion euros, is far from being exhausted this year. According to the template, the government assumes that a good 103.7 billion euros will be carried over into the next year at the turn of the year.
The price brakes were intended to mitigate the rapid rise in gas and electricity prices following the Russian attack on Ukraine. Recently, however, the prices for new customers have generally been below this limit. To be on the safe side, the federal government still wants to extend the price brakes until the end of April 2024.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
