After the Federal Constitutional Court’s ruling, the Social Democrats are putting parts of the coalition agreement to the test.
Berlin – In order to plug the financial hole in the federal budget, the waiver of tax increases decided by the traffic light coalition before the legislative period could be called into question. SPD leader Lars Klingbeil said this German press agency in Berlin.
Tax increases in Germany: Traffic light coalition no longer rules out anything due to the budget crisis
It was agreed in the coalition agreement that investments in the country’s future should be financed with money from the Corona pot. “It was derived from this that we are returning to normal with the debt brake and that there is no need for a tax increase,” explained Klingbeil. Now the first has been broken down by the ruling of the Federal Constitutional Court. “For us as the SPD, that of course also means that we are talking about the other two things now.”
Christian Lindner, on the other hand, is not currently talking about tax increases. The Federal Minister of Finance has specified in which areas he believes savings are possible in order to close the gaps in the budget for 2024. “We will have to deal with three major cost blocks,” the FDP politician told the newspapers Funke Media Group. He mentioned the areas of social affairs, including citizens’ money, international financial aid and unspecified funding programs.
Tax increases in Germany cannot be ruled out: the traffic light coalition has to plug billions in holes in the budget
The traffic light coalition continues to wrestle with how much money the federal government can spend on in the coming year and where it can save money. The Karlsruhe ruling has left billions in gaps in both the 2024 budget and a fund for modernizing the economy and climate protection. While Lindner insists on savings, the SPD and the Greens now obviously want to ensure more income through tax increases and loans.
Klingbeil promised difficult conversations. Currently these are mainly taking place in a three-way round with Chancellor Olaf Scholz, Vice Chancellor Robert Habeck and Lindner. First of all, the three want to clarify how the budget can be prepared for the coming year.
Tough struggle over possible tax increases: Klingbeil wants the debt brake to be suspended
Klingbeil called for a suspension of the debt brake, as the federal government has also initiated for 2023. The Basic Law allows this in the event of natural disasters or exceptional emergency situations.
“There must be savings from the federal government. But in the end, I have a firm political conviction: We have to declare an emergency for 2024 because I don’t want to get into a situation where we play off Ukraine aid against climate investment,” emphasized Klingbeil. “I want us to continue to be strong supporters of Ukraine, and I hope that there is a consensus among the democratic parties.”
Aside from tax increases: Klingbeil is committed to movement in the Union
Klingbeil expects that the debate about reforming the debt brake will gain further momentum after the budget resolution. “I believe that there will be a lot of movement on the part of the Union if the prime ministers, the mayors and the district administrators realize how the Federal Constitutional Court ruling ensures that there is less money,” he said outside of a debate about possible tax increases.
At its party conference next weekend in Berlin, the SPD wants to pass a key proposal that provides for a relaxation of the debt brake and tax increases for the super-rich. The Social Democrats want to make it possible for more money to flow into infrastructure and the jobs of the future. “This is not a direct reaction to the Federal Constitutional Court, it is our social democratic stance, which is exactly right right now,” said Klingbeil.
The opposition Union currently sees no solid justification for the decision to create an emergency situation for 2024. If the traffic light coalition nevertheless suspends the debt brake, the Union could go to the Federal Constitutional Court again. (skr/dpa)
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