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Coalition partners LIndner, Habeck, Scholz: Also painful decisions
Photo: Kay Nietfeld / dpa
This week, Christian Lindner (FDP) will start negotiations on the 2024 budget in two-person talks with cabinet colleagues. The Federal Minister of Finance expects tough negotiations.
On the one hand, the state's financial leeway has become significantly smaller after record spending in the corona and energy crisis.
On the other hand, there are still wishes in the traffic light coalition for considerable additional spending - for example for the basic child security planned by Family Minister Lisa Paus (Greens) or Lindner's own project for a share pension.
A toxic exchange of letters between Lindner and Economics Minister Robert Habeck (Greens) showed in advance how much potential for conflict there is in the next budget.
Against this background, the Federal Court of Auditors now has its say.
In a new report on the occasion of the budget deliberations, the control committee warns of a "loss of control over federal finances" and demands that the traffic light coalition must "examine and reprioritize all income and expenditure".
In this context, the Federal Audit Office Kay Scheller expressly recommends that the coalition partners argue about the budget.
It is better "to settle conflicts too" instead of postponing them to the future through debt financing.
According to the Court of Auditors, the federal government has earmarked almost 850 billion euros in new debt in the fight against the global crises of the past three years.
That means an increase of 60 percent to more than 2.1 trillion euros.
Further growth threatens to "seriously jeopardize the sustainability of federal finances," says the report.
Therefore, it may be necessary "also painful, decisions to stabilize the federal finances again as quickly as possible".
But where exactly should the coalition save?
The auditors recommend, among other things, to take a close look at all government funding programs.
"All subsidies that have a climate-damaging effect belong on the test bench," says Scheller.
An example is the subsidization of diesel fuel.
Where funding is provided, only those in need should benefit.
In the case of the energy flat rate, for example, one could »already ask oneself why the watering can is poured out«.
Interest expenses increase tenfold
The head of the audit office was also critical of the plans for stock pensions.
This becomes the “milkmaid bill if I finance it with new debts”.
However, there are still "many unanswered questions" about the details of the project.
The Federal Court of Auditors also justified its warnings with the effects of the interest rate turnaround.
While the federal government paid almost four billion euros in interest in 2021, it would be almost 40 billion euros in 2023.
The federal government has “largely surrendered to this development, especially since it has not secured the low-interest credit conditions of recent years for the long term”.
The federal government must therefore report regularly to Parliament on interest rate risks.
In view of the burden on future generations, the loans taken out during the crisis should also be repaid more quickly.
The auditors also renewed their criticism of the so-called special assets, which Lindner recently used to equip the Bundeswehr, among other things.
With their help, the requirements of the debt brake would be circumvented, according to the report.
According to the Court of Auditors, the expansion of debt through special funds should no longer be possible.
»This underlying principle was eroded 'slice by slice' in 2022.«