The dispute over the budget is becoming more heated. The governing parties are insisting on fundamental positions – and are visibly moving towards confrontation.
FDP General Secretary Bijan Djir-Sarai insists on compliance with the debt brake and accuses the larger coalition partner SPD of endangering economic development in the struggle over budget policy. “The debt populism of the SPD in particular is also dangerous for the future and development of our country,” said Djir-Sarai in Berlin after a presidium meeting of his party. He warned: “With ever more debt and an expansion of the welfare state, Germany will not be able to generate more growth and prosperity.”
Some demands are toxic for prosperity, said Djir-Sarai. In addition, compliance with the debt brake is also included in the coalition agreement. “Interestingly, everything in Germany has to be sustainable these days. That’s a good thing, but we often forget in German politics that financial policy must also be sustainable. That means no debt, no burdens at the expense of future generations,” demanded Djir-Sarai. In a resolution, the party presidium also called for increased efforts to reduce bureaucracy in Germany and the EU.
Federal Finance Minister and FDP leader Christian Lindner sees his austerity policy confirmed by the summer interviews with Chancellor Olaf Scholz (SPD) and Union parliamentary group leader Friedrich Merz (CDU). “The debt brake applies and we have to make do with the money we have. And that means, among other things, that more people who could work are working instead of receiving citizen’s allowance. And we have to work on the laws again, we have to tighten them up,” Lindner told the news channel “Welt TV”. He supported the call by the Young Group of the FDP parliamentary group in the Bundestag to ensure investment in education through austerity measures elsewhere.
SPD insists on more debt leeway
The SPD insists on greater flexibility when it comes to new debts. The war against Ukraine represents “an emergency that we cannot deal with from a normal budget without painfully neglecting our duties,” said party leader Saskia Esken after a presidium meeting in Berlin.
“It is quite clear that we as the SPD are not prepared to allow our solidarity with Ukraine to be pitted against the continued existence of our solidarity with our own people.” She therefore appeals not to take any option off the table too quickly, including a renewed suspension of the debt brake.
“The exception rule from the debt brake is a constitutional part of the debt brake and not a watering down,” said Esken. It is perfectly clear that the war in Ukraine has created an emergency situation like that in 2022 and 2023. Military support for the country has continued to increase in quality, quantity and cost. “Nevertheless, the FDP has so far insisted that this emergency situation apparently no longer exists in 2024 and also for 2025,” she criticized. She finds that absurd.
Source: Stern
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