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Scholz's reassuring speech on the budget

2023-11-28T10:20:12.608Z

Highlights: The Federal Constitutional Court has declared the reallocation of 60 billion euros in the 2021 budget null and void. The traffic light coalition is facing tough negotiations, because up to 20 billion euros must be saved. Finance Minister Christian Lindner has already prepared his traffic light colleagues for "considerable efforts" Opposition leader Friedrich Merz sharply attacked Scholz and denied him the competence to become chancellor. "You are a plumber of power," Merz criticized the SPD politician. The Bundestag has postponed the conclusion of the budget deliberations.



Status: 28.11.2023, 11:10 a.m.

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"The state will continue to live up to its duties": Federal Chancellor Olaf Scholz. © Michael Kappeler/dpa

The Karlsruhe verdict has hit the traffic light hard - even the Chancellor admits that. He is not yet able to present any real decisions. Opposition leader Merz denies him the chancellor's competence.

Berlin - German Chancellor Olaf Scholz has assured citizens of reliable state benefits despite the budget crisis - but at the same time has also hinted at austerity measures. "The state will continue to do justice to its tasks," the SPD politician emphasized in a government statement in the Bundestag.

Current expenses could continue to flow. "The ruling of the Federal Constitutional Court does not change anything in your everyday life here and now - regardless of whether you receive child benefit or Bafög, a pension or housing benefit," Scholz assured.

The Federal Constitutional Court had declared the reallocation of 60 billion euros in the 2021 budget null and void. The money had been approved as a Corona loan, but was to be used retrospectively for climate protection and the modernization of the economy. At the same time, the judges ruled that the state should not set aside emergency loans for later years. However, the federal government has done this in several special funds, including for the energy price brakes.

Therefore, contrary to what had been planned, the Bundestag will not be able to pass the budget for the coming year this week. The traffic light coalition is facing tough negotiations, because up to 20 billion euros must be saved. In addition, a decision must be made as to which projects from the Climate and Transformation Fund can still be implemented, even though 60 billion euros are missing. Finance Minister Christian Lindner has therefore already prepared his traffic light colleagues for "considerable efforts".

Scholz also hinted at tough decisions. The Bundestag has postponed the conclusion of the budget deliberations. "This gives us time to explore existing room for manoeuvre in the budget, to set priorities and, of course, to limit spending," he said. However, he did not provide further details. It also remained unclear when the budget for the coming year would be adopted.

Merz: "They can't do it"

Opposition leader Friedrich Merz then sharply attacked Scholz and denied him the competence to become chancellor. "You can't," he said. The shoes of a chancellor are at least two sizes too big for Scholz. The SPD politician had only given technical answers to a highly political decision. "You are a plumber of power," Merz criticized. The leader of the CDU/CSU parliamentary group accused Scholz of not having apologized for an unconstitutional manipulation of the debt brake - he had not even expressed a word of regret.

The CDU federal chairman and CDU/CSU parliamentary group chairman Friedrich Merz during his speech in the Bundestag. © Melissa Erichsen/dpa

Scholz admitted that the Karlsruhe ruling makes the work of his traffic light coalition much more difficult. "This ruling creates a new reality - for the federal government and for all current and future governments, federal and state. A reality, however, that makes it more difficult to achieve important and widely shared goals for our country," he said.

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Nevertheless, Scholz wants to stick to the course of modernising Germany. It would be a "grave, unforgivable mistake" to neglect this now, because it would create good jobs, a strong economy and thus the foundation of future prosperity. The major modernization projects for Germany have not become obsolete. He wants Germany to be at the forefront of future technologies. "Because there's a lot at stake for all of us. It's about secure jobs. It's about a competitive economy. It's about a good life for generations to come. And it's about our ability to safely manage future crises as well." With these premises, the budget for the coming year will now be discussed. Dpa

Source: merkur

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