The Cabinet at Germany decided today to take on new debt of € 200 billion under the 2022 budget. The decision includes, among other things, the modernization program of the German armed forces, tax breaks and child benefit.
The government has decided the creation of the € 100 billion special fund for the armed forces, announced by Chancellor Olaf Solz from the podium of the Federal Parliament shortly after the start of the war in Ukraine, according to the German News Agency (dpa) and the Athenian News Agency. There is a constitutional revision on the issue, so a two-thirds vote in the Bundestag is needed, and therefore votes from the opposition. However, the leader of the Christian Democratic Party (CDU), Friedrich Mertz, has already expressed his support for the Bundeswehr’s modernization plan.
The special fund, however, is not provided for in the normal legislative procedure concerning the budget and the loans that will be needed will not be calculated in the “debt brake”.
The ruling coalition also approved economic planning until 2026, with an emphasis on Energy and Climate. For the period 2022-2026, more than 200 billion will be allocated to Climate Change policy.
To address the rise in energy prices, the government has approved a bill with tax breaks. In this context, tax revenues will be 4.5 billion euros less this year and by 426 about 4 billion less per year.
Source: News Beast
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
