The cabinet decided today to take on a new debt of 200 billion euros under the 2022 budget. The decision includes, among other things, the modernization program of the German armed forces, tax relief and child allowance.
According to the German News Agency (dpa), the government has decided to create a special fund of 100 billion euros for the armed forces, which was announced by Chancellor Olaf Soltz from the floor of the Federal Parliament shortly after the start of the war in Ukraine. 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.
Source: ΑΠΕ-ΜΠΕ
Source: Capital
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