Finances: Budget crisis: Union increases pressure on traffic light coalition

Finances: Budget crisis: Union increases pressure on traffic light coalition

From the SPD’s perspective, the 2024 budget cannot be decided before the end of the year. The Union says: It is time for Chancellor Scholz to ask a question.

The Union is increasing the pressure on the traffic light coalition in the budget crisis. CDU General Secretary Carsten Linnemann called on Chancellor Olaf Scholz (SPD) to ask the vote of confidence. “I think it would be better for the Chancellor to ask the vote of confidence in the German Bundestag,” said Linnemann on the ZDF program “Maybrit Illner.”

The Parliamentary Managing Director of the Union faction, Thorsten Frei, called on Bundestag President Bärbel Bas in a letter to intervene in the current situation. It became known on Thursday that the SPD parliamentary group leadership no longer believes a Bundestag resolution on the 2024 budget is possible this year.

Linnemann said on ZDF that if Scholz wins the vote of confidence, the traffic light government would have to make a plan for the next two years. “Things can’t go on like they are now.” However, if he loses the vote of confidence, the citizens would have to decide on a new beginning. “We need honesty now. This country cannot afford to continue like this for two years.”

SPD federal party conference begins today

SPD General Secretary Kevin Kühnert said on the show that he was sure that Scholz enjoyed the trust of all parts of the traffic light government. New elections would bring further uncertainty to the country.

Chancellor Scholz, Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) have been struggling for days about how a 17 billion euro hole in the 2024 budget can be plugged. It was created, among other things, by the budget ruling of the Federal Constitutional Court.

The SPD parliamentary group leadership no longer believes a Bundestag resolution on the 2024 budget is possible this year. The parliamentary managing director of the largest coalition faction, Katja Mast, made this statement on Thursday in a text message to her group coordinated with parliamentary group leader Rolf Mützenich. Starting this Friday, the Social Democrats will meet in Berlin for their federal party conference.

Letter to Bas: “Call coalition factions to order”

In a letter on Thursday, Frei demanded that Bundestag President Bärbel Bas (SPD) call for order at the traffic lights. The coalition’s approach so far has been characterized by lack of planning and stubbornness, according to a letter that was available to the German Press Agency. “Even budget law, the royal law of parliament, is no longer spared from the chaos of traffic lights.”

The way the government and the traffic light factions deal with the Bundestag is unacceptable. The budget discussions in the committees on Thursday were a new low point. Apparently the members of the coalition factions did not fully know what they were actually voting on. “Dear Madam President, it is urgent that you personally get involved in the events and call the federal government and the coalition factions to order,” demands Frei. The “Süddeutsche Zeitung” had previously reported.

Economist Fratzscher warns of an escalation of the situation

From the perspective of economist Marcel Fratzscher, the budget crisis must be ended as quickly as possible and a federal budget must be passed for 2024. “Otherwise the situation will escalate and could drive the German economy into recession again,” said the President of the German Institute for Economic Research to the German Press Agency.

“The biggest problem today, both politically and economically, is not cuts in spending or subsidies, but rather such a massive loss of confidence in the ability of politicians to act that companies are canceling their investments or relocating them abroad,” said Fratzscher. “Stability and keeping promises must now be the top priority for the federal government.”

Fratzscher spoke out in favor of suspending the debt brake again, as many in the SPD and the Greens want – but the FDP has so far been very skeptical.

The taxpayers’ association demanded extensive budget savings. “Whether the 2024 federal budget will be passed this year or at the beginning of next year is secondary,” said President Reiner Holznagel to the editorial network Germany (RND/Friday). “It is crucial that the traffic light sets the structural course for savings.” The consolidation will not end with the 2024 budget.

Source: Stern

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