“Germany is basically not mentally prepared for this”
“It has to be saved, it hits all departments hard”
On the fringes of his visit to Brazil, Economics Minister Habeck spoke about the budget dispute in the federal government. Habeck points out that compliance with the debt brake without tax increases means that the federal government has to save. That would hit all ministries hard.
Economics Minister Robert Habeck (Greens) is concerned about the budget dispute in the government. It was not a dispute between the coalition partners, but a “difficult task” that had to be solved by the Ministry of Finance.
DAccording to Vice Chancellor Robert Habeck (Greens), the spending discipline demanded by Federal Finance Minister Christian Lindner (FDP) affects all ministries equally. “It has to be saved. That hits all departments hard,” Habeck told the broadcaster WELT on the sidelines of his visit to Brazil. The Federal Minister of Economics added: “Basically, Germany is not at all mentally prepared for this either.”
Habeck sees an “objective problem”. Compliance with the debt brake and at the same time no additional income from higher taxes means spending less money. He added: “Of course, all departments have plans, spending requests, higher personnel costs that have to be borne.” In this respect, this is not a dispute primarily between the coalition partners. “Rather, it is simply a difficult task that must now be resolved in a joint discussion with the Ministry of Finance,” stressed Habeck.
On Sunday evening, Lindner again asked his cabinet colleagues to exercise discipline. “We have to consolidate,” said Lindner on Sunday in ARD’s “Report from Berlin”. Last week, the minister canceled the cabinet decision on the cornerstones of the 2024 budget and the financial plan up to 2027, which was actually planned for Wednesday. He did not name a new date.
The dispute revolves around the priorities of the budget and additional demands from the various departments of up to 70 billion euros. After various exceptions in recent years, Lindner wants to comply with the debt brake again because of the corona pandemic and in 2022 also because of the Ukraine war.
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