The coalition is wrangling over the budget, Christian Lindner is insisting on compliance with the debt brake. The SPD is continuing to apply pressure – and is bringing an alternative for more investment into play.
In the budget dispute of the traffic light coalition, the SPD continues to push for more options for new debt. Party leader Lars Klingbeil made it clear that instead of suspending the debt brake, his party can also imagine a credit-financed special fund for investments.
“First of all, all ministries have to look at where they can save money. But it is also clear that we cannot cut 30 to 40 billion from a core budget,” Klingbeil told the “Süddeutsche Zeitung”. He expects that all options will now be discussed “without ideology”. “The BDI has just proposed a special fund for investments. The SPD would be ready to talk about it immediately.”
The Federation of German Industries (BDI) had complained about a huge investment backlog in Germany and had therefore proposed special funds worth billions – in other words, credit-financed extra funds in addition to the federal budget and outside the debt brake.
Struggle over draft budget
The traffic light coalition of the SPD, the Greens and the FDP has been wrangling for months over a draft budget for the coming year. A double-digit billion-euro gap in the budget planning must be plugged. FDP Finance Minister Christian Lindner insists on adhering to the debt brake – but the SPD has recently been putting increasing pressure on the government to use an exception and suspend it. But Lindner also rejected the BDI’s proposal for special funds.
“If we set the right impulses with the budget now, then we will see decent growth next year,” argued Klingbeil. “If cuts are made now and new uncertainty arises, then that will be stifled. That cannot be in the interest of the FDP finance minister either.” And no one can deny that the war in Ukraine is an exceptional situation. In exceptional situations, the Basic Law allows the debt brake – the upper limit for loans in the federal budget – to be suspended.
Source: Stern
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