As of: February 5, 2024, 6:01 p.m
By: Lars-Eric Nievelstein
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The federal government is still in a budget crisis.
Which legislative proposals are in focus?
We've taken a look at some of the most important legislation for 2024.
Berlin - The budget dispute clearly marked January, but on Friday (February 2nd) the Bundestag is finally due to pass a draft.
Finance Minister Christian Lindner (FDP) took a position early on against tax increases or exemptions from the debt brake, which is why it was unclear for a long time where the government wanted to save all the money.
Nevertheless, the federal government is already planning for the second legislative period in some areas.
What plans do you have for the current year?
Traffic light plan for pensions: New pension package is intended to secure a holding line for pensioners after agreement in the budget
The new pension package stipulates that pensioners will be guaranteed, on average, no less than 48 percent of their previous salary as a pension.
The federal government calls this mechanism the holding line for the pension level, which, according to current status, should apply until 2025.
With the new pension package, the government wants to lay the legal foundation for the period afterwards.
This means: The stop line should remain secured in the long term.
The federal government is still in a budget crisis.
A stop line is intended to secure pensions, and there is even talk of freezing rents.
© IMAGO / Belga
In addition, the stock pension is still planned.
The traffic light coalition wants to use public funds to gradually build up a capital stock that will relieve the burden on pension insurance and stabilize pension contributions.
Currently, employees and employers pay around 18.6 percent of their gross wages into the pension fund.
Due to demographic change, a shrinking number of contributors is faced with a growing number of pensioners who need to be financed.
New traffic light plan for climate money: Nothing new from Berlin – even with an agreement in the budget
It is still not clear in what form or when the climate money will come into force.
A few weeks ago, the finance minister announced that he would not implement climate money until the next legislative period.
A new dispute had already broken out between the coalition partners;
Chancellor Olaf Scholz (SPD) announced through a government spokesman that the technical requirements for climate money should be in place by the end of 2024.
The Federal Ministry of Finance is currently in the process of developing a corresponding model.
A number of proposals had already been made in the public discussion, for example a one-off payment of 139 euros per person, financed entirely from the federal government's CO₂ revenue.
It is also unclear whether the population actually wants the climate money.
A recent survey shows that most Germans would like to use their money in ways other than a one-off payment.
New traffic light plan for tenants: The rent cap is to be extended until 2028
The rent cap remains – the federal government plans to maintain the measure until 2028.
According to current status, it would expire on December 31, 2025.
For municipalities that have implemented a rent control system, the new project would mean that they would have to repeal this regulation at a later date.
High rental prices are a problem in many German cities.
Recently, the prices for residential property had fallen significantly, but this had not put a damper on the growth in rental prices.
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According to the tenants' association, a rent control is not enough.
This sets a “cap” that any increase in rent may not exceed in the end, but actually the rents should be frozen.
And that over five to six years.
During this time, the urgently needed apartments would have to be built.
The General Association of German Housing Companies reported that three quarters of a million apartments were currently missing.
With an upward trend.
The federal government plans to introduce a “qualified rent index” that is intended to slow the growth of rental prices.
The rental agreements from the last six years are currently included in the calculation of the rent index;
In the future it should be seven years.
In the long term, tax returns should also be included in this calculation.
The coalition agreement stipulates that the “qualified rent index” should apply to all municipalities with 100,000 or more inhabitants.
New traffic light plan for the economy in Germany: The new investment protection law
Because the federal government wants to monitor foreign investments more closely, a new investment protection law is also on the agenda.
This includes better control of exports and protection of critical infrastructure.
Since the law is still in the voting phase, it is not clear whether it will come into force in 2024.
Finally, an amendment to the Agricultural Organizations and Supply Chain Act is pending.
According to the Federal Ministry of Food and Agriculture (BMEL), there is a drastic power imbalance between farmers and processing and food trading companies, which puts producers at a disadvantage.
The law is intended to strengthen the position of farmers.
Further details are not yet known.