As of: February 22, 2024, 10:45 a.m
By: Amy Walker
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Clear words from the Economics Minister: During the debate about the annual economic report, Habeck called on the Union to end its blockade of the Growth Act.
Berlin - Federal Minister of Economics Robert Habeck called on the Union to end the blockade on the growth package when presenting the annual economic report in the Bundestag.
“Listen to the business associations and finally give the Growth Opportunities Act the green light,” said the Green politician on Thursday (February 22).
It is “logically difficult to get together” as the CDU and CSU insist on the one hand that the federal government must do more, but on the other hand also insist on the debt brake.
According to Habeck, this is “voodoo economics”.
Robert Habeck, Federal Minister of Economics, presents the annual economic report in the Bundestag.
© Michael Kappeler/dpa
“Unfortunately, dear colleagues from the Union, you didn’t bother to counter-finance your proposals,” Habeck continued.
The Union's proposals for more growth would result in tax losses of 45 to 50 billion euros in the budget - the Union claims that these losses would be flushed back into the coffers through more growth alone.
“According to a rough calculation, that would mean GDP growth of over five percent.
In ten months,” said Habeck.
“I don’t think it even survives a preliminary audit by the Federal Audit Office.”
Tax reform should also stimulate the economy
Habeck presented the annual economic report on Wednesday.
The federal government is only expecting mini-growth of 0.2 percent this year.
Habeck once again referred, for example, to weak world trade, which is putting a strain on the German economy, which has strong exports.
He cited the shortage of skilled workers as the biggest structural problem.
This should be addressed, among other things, through a tax reform from the Federal Minister of Finance.
The government's growth package has been stuck in the Federal Council for months.
Even after a meeting of the mediation committee of the Federal Council and the Bundestag, it is unclear whether the Union will agree to the growth package in the Bundesrat on March 22nd.
The votes of the Union countries are necessary for this.
The Union is making its approval conditional on the cancellation of agricultural diesel subsidies in another law already passed by the Bundestag.
The volume of the growth package, which, among other things, provides tax relief for companies, was significantly reduced in the mediation process - countries had previously complained about high revenue losses.
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With material from dpa