Energy relief: "double boom" loan unconstitutional according to the Court of Auditors

Created: 10/18/2022, 4:38 p.m

By: Patricia Huber

With a 200 billion euro protective shield, the federal government wants to relieve the burden on citizens.

But the Federal Court of Auditors is now putting obstacles in the way of financing.

Bonn/Berlin – Is there no “double boom” after all?

With a defense shield worth 200 billion euros, the federal government wants to relieve the burden on German citizens.

The high energy prices are to be cushioned, among other things, by a gas price brake and taking over the December down payment.

But who should pay for that?

A loan should remedy the situation - but the Federal Court of Auditors is now thwarting these plans.

Court of Auditors slows down "double boom": protective shield financing unconstitutional

According to the Federal Court of Auditors, the government's planned borrowing is unconstitutional.

"The planned borrowing "in reserve" violates the constitutional principle of annuality," says a report to the budget committee, which is available to the German Press Agency.

This rule, laid down in the Basic Law, states that the budget is drawn up for one year - loans taken out are intended to compensate for a budget deficit in the same year.

The federal government, on the other hand, is planning to create a special fund of 200 billion euros this year, which will then be used to cover expenditure on a gas price brake, corporate aid and other measures up to 2024.

In its report, the Court of Auditors advocates financing the protective shield directly from the normal federal budget.

Scholz: With the "double boom" from the energy crisis

Chancellor Olaf Scholz spoke of a "double boom" when presenting the multi-billion dollar defense shield - and thus reminded of the state aid in the Corona crisis, which was supposed to lead out of the crisis with "boom".

"The prices have to go down," emphasized the SPD politician in Berlin.

The federal government will do everything for this.

The huge package should help pensioners, families, craft businesses and industry to pay the high bills.

It is about surviving as a “strong and robust economy this time,” said Economics Minister Robert Habeck (Greens).

With the 200 billion, the "attack by Russia, by Putin's regime, on our economy" should be fended off.