As of: February 4, 2024, 4:51 a.m
By: Lars-Eric Nievelstein
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The federal government is in a budget crisis.
Which legislative proposals does the traffic light prioritize?
We've taken a look at some of the most important new laws.
Berlin – The government had argued for a long time about the budget for 2024.
The Bundestag could pass the draft on Friday (February 2nd).
Finance Minister Christian Lindner (FDP) decided early on against tax increases and exceptions to the debt brake, so it was not clear for a long time where the government would want to put the red pencil.
However, that does not stop the federal government from planning for the second legislative period.
What plans are already in place?
Holding line for the pension level |
48 percent of previous wages |
|---|---|
Possible climate money as a one-off payment |
139 euros |
When does the qualified rent index apply? |
100,000 inhabitants |
Pension package and retirement provision
The new pension package is intended to ensure a long-term stability limit for pension levels.
Specifically, it is intended that pensioners will receive an average of at least 48 percent of their previous salary as a pension.
Of course, in practice this often looks different, but the pension level is still considered an important key figure when determining the pension average.
This is what the traffic light government is planning for 2024: pension, rent and investment © IMAGO / dts news agency
Because the current holding line for the level of protection in the statutory pension applies until 2025, the new pension package is intended to lay the legal foundation for the period after that.
This also includes plans for a stock pension.
Here, the traffic light coalition wants to use public funds to build up a capital stock piecemeal, which is essentially intended to relieve the burden on pension insurance and stabilize pension contributions.
Employees and employers currently pay around 18.6 percent of their gross wages into the pension fund.
As a result of demographic change, it is already clear that an ever-increasing number of pensioners are faced with a decreasing number of contributors.
There are still uncertainties in the climate money debate
When it comes to climate money, it is still not clear whether it will actually come into force this year.
Just a few weeks ago, Federal Finance Minister Christian Lindner (FDP) announced that climate money would not come until the next legislative period.
This called the coalition partners into action.
Olaf Scholz (SPD) intervened in the discussion through government spokesman Hebestreit.
The technical requirements for climate money should now be in place by the end of 2024.
The ball is currently in the Federal Ministry of Finance’s court.
This is working on a corresponding model.
The Federal Association of Consumer Organizations (VZBV) proposed that the federal government should pay out the revenue from the CO₂ tax directly.
A payment of 139 euros per person would be expected here.
At the same time, it is not entirely clear whether the climate money would actually reach the population.
A recent survey found that Germans would rather have their money used in other ways than a one-off payment.
A rent cap in times of skyrocketing prices
The federal government also wants to extend the rent control until 2028.
It would expire on December 31, 2025.
This would mean that in municipalities that have implemented a rent cap, this regulation will no longer apply at a later date.
The drastic growth in rental prices is currently a problem in many German cities - even though residential property prices have recently fallen.
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The rent control is not enough for the tenants' association.
This would set a “cap” that any increase in rent may not ultimately exceed.
The tenants' association, on the other hand, is calling for current rents to be frozen for five to six years.
The urgently needed apartments would have to be built during this time.
According to the General Association of German Housing Companies (GdW), three quarters of a million apartments are currently missing.
The trend is increasing.
A “qualified rent index” is intended to slow the growth of rental prices.
The rental agreements from the last seven years (instead of the previous six years) should be used to calculate the rent index.
In the long term, tax returns could also have an impact on this calculation.
According to the coalition agreement, the “qualified rent index” should apply to all municipalities with 100,000 inhabitants or more.
Germany is taking a closer look at investments
The federal government is currently planning a new investment protection law.
The idea behind it: The federal government should be able to check foreign investments more strictly.
Better control of exports and protection of critical infrastructure are also planned.
However, the law is still in the voting phase;
it is unclear whether it will be used this year.
And finally, an amendment to the Agricultural Organizations and Supply Chain Act is imminent.
The background: Farmers generally have less bargaining power than companies in the often concentrated stages of processing and food trading.
According to the Federal Ministry of Food and Agriculture (BMEL), this power imbalance has led to practices that disadvantage producers.
The law is intended to strengthen their position.
Further details about these proposed laws have not yet been finalized.