According to a report, Finance Minister Lindner is planning a €20 billion austerity package. The traffic light budget dispute intensified.
According to a report, Federal Finance Minister Christian Lindner (FDP) is planning a savings package with a possible volume of up to 20 billion euros. He wants to close the funding gaps in the 2024 federal budget and create some leeway for unavoidable additional spending, as the “Spiegel” reported on Friday, citing officials from the Federal Ministry of Finance.
However, a spokesman for Christian Lindner told t-online on Friday evening that the ministry rejected the “Spiegel” account.
The news magazine reported that savings should be made primarily in the departments with the highest social spending, i.e. the ministries for work and for families. The Ministry of Defense should therefore be spared. In order to achieve the savings targets, a so-called accompanying budget law could be initiated. This interferes with statutory state benefits such as subsidies or social spending.
Theoretically, such a project could also include tax increases, but Lindner’s officials ruled that out, according to the report. The federal government must be in a position to finance its expenditure of 424 billion euros with constantly growing tax revenue without increasing taxes.
Unrest among coalition partners
Lindner justifies his austerity course for the 2024 budget with the aim of being able to comply with the statutory debt brake. Due to discrepancies in the coalition, key figures for the 2024 budget have not been decided this year, as is usually the case. The government draft is now due to be approved by the cabinet on June 21 after the tax estimate for May.
Some of Lindner’s plans met with rejection from the social-democratic coalition partner. SPD parliamentary group leader Rolf Mützenich criticized the minister and at the same time made suggestions as to how new funds could be mobilized in the federal budget.
Mützenich told the German Press Agency: “I expect seriousness in the deliberations, especially from the cabinet members who are responsible for drawing up the budget and who nevertheless keep coming up with extensive spending requests – while at the same time insisting on the discipline of others . Preaching water and drinking wine don’t go together.”
“Expect restraint in communication”
The SPD parliamentary group leader said the upcoming budget deliberations were like open-heart surgery. “Accordingly, I expect cooperation and restraint in communication from everyone involved. The challenges, which go beyond the annual budget, are too great to put individual sensitivities into the room with small coins.”
Mützenich suggested opening the Economic Stabilization Fund. “Of course we have to check exactly where there is potential for savings. But we should also talk about how we can mobilize additional funds from existing reserves. It is important that we invest in the future viability and climate neutrality of our country.”
FDP calls for rethinking
The economic stabilization fund set up during the corona pandemic was reactivated during the energy crisis in order to cushion the consequences. The fund, which has a volume of up to 200 billion euros, is primarily used to finance the electricity and gas price brake. However, due to falling prices, the financing of the brakes could become significantly cheaper.
The FDP rejected Mützenich’s request. FDP faction deputy Christoph Meyer told the dpa: “The FDP expects the coalition partners to work for economic growth and jobs.” Because the economy and people financed the welfare state. “Especially politicians who, in positions of responsibility, have experienced the profit from massive increases in tax revenue over the past ten years and have used this for more and more new spending programs, should learn to rethink here.” Meyer also rejected an opening of the Economic Stabilization Fund.
The traffic light has been arguing for a long time about the financing of the planned basic child security. Family Minister Lisa Paus (Greens) would like 12 billion euros to increase benefits for families. The FDP rejects this. Paus told the SWR capital city studio when asked where the 12 billion euros should come from: “The truth is simple, the finance minister wants to spend the money on other things.”
