One day after the bombshell on climate financing, it’s all about money again in the Bundestag. More precisely: final changes to the budget for 2024. It should still be passed as planned.
The Bundestag Budget Committee is today putting the finishing touches to the budget for next year drawn up by Finance Minister Christian Lindner (FDP). The consultation is to take place even though the Federal Constitutional Court made a ruling yesterday that tore a 60 billion dollar hole in the financing of climate projects.
The projects that were supposed to be paid for from the so-called climate and transformation fund are therefore on hold – with the exception of funding for the replacement of old oil and gas heating systems and other funds for climate-friendly buildings. The federal government announced that a new economic plan would be developed for the special fund. However, the normal budget of the federal ministries for 2024 is not affected by the ruling. The federal budget for the coming year should therefore be decided according to plan.
Experience has shown that the MPs will make a number of changes in the so-called adjustment session. The session therefore often lasts until late at night or even until the next morning. The Bundestag should then finally decide on the draft budget in the week of the session from November 27th to December 1st.
Military aid to Ukraine
It is already clear that Lindner’s first draft cannot remain as it is. This is usual because after the government draft is presented, political decisions are made for months – in this case, for example, to relieve the burden on companies in view of high electricity prices. The Ministry of Finance itself therefore sent a so-called adjustment template to the committee on Monday evening.
On the one hand, provisions are made for the agreed reduction in electricity tax for the manufacturing sector, which the traffic light coalition announced last week. Lindner also plans to double military aid to Ukraine. Instead of the originally estimated four billion euros, eight billion euros are now earmarked – for supporting Ukraine and for the replacement of Bundeswehr material that was given to the country attacked by Russia.
However, it initially remained unclear whether the budget holders would again approve support for civilian sea rescue in the Mediterranean or whether they would permanently reduce the VAT for the catering industry. Apparently no decision has yet been made about increasing the share pension.
Lindner wants to comply with the debt brake
As this year, Lindner wants to once again comply with the debt brake anchored in the Basic Law with his budget for 2024. The householders should not shake this principle. Nevertheless, smaller scope has recently opened up: the most recent tax estimate resulted in an additional 2.3 billion to be distributed, and the federal government is also allowed to take on a little more debt than previously planned due to the weak economy. In his first draft, Lindner had planned expenditure of 445.7 billion euros.
Because of the ruling from Karlsruhe, the Union faction had called for a stop to the ongoing budget process for the coming year. In the afternoon, at the request of the Union, the Bundestag will deal with the decision of the Federal Constitutional Court in a current hour.
After the verdict, calls for the debt brake enshrined in the Basic Law to be relaxed became louder from several quarters, including the trade unions. The leader of the Left Party, Martin Schirdewan, called for their abolition. “It is very clear that the debt brake is an investment brake that prevents future investments,” said Schirdewan to the “Augsburger Allgemeine”. But because Chancellor Olaf Scholz and Finance Minister Christian Lindner stuck to it and the Greens were unable to implement their plans, he was not giving the government alliance “many more months in this composition,” said Schirdewan.
According to the “Bild” newspaper, the deputy SPD chairwoman Serpil Midyatli said about the ruling from Karlsruhe: “The SPD would be prepared to reassess fundamental questions of distribution in order to improve the revenue side. For example, by increasing wealth and inheritance taxes “.
Source: Stern
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