The finance minister Christian Lindner (FDP) assured today from the floor of the Bundestag that the “debt brake” will be back in place for 2024. For the current year, it was decided to remove the measure in an emergency, in order to cover the fiscal “hole”.
“In 2024 we will comply with the debt brake. It is important that to realize the future investments and important projects of the government coalition, while other – no longer necessary – expenses will be canceled”, emphasized Mr. Lindner and promised a restructuring of public expenses. “Accumulating even more debt with sharply increased interest rates is not the right way,” he noted.
According to him, the funding gap for next year amounts to 17 billion euros, but for now it has not been clarified how to cover it, as there are different approaches between the coalition parties.
According to the report of the first channel of the German public television ARD, various things are discussed among others austerity measures, but even a new lifting of the debt brake in order to finance aid to Ukraine by borrowing. However, Christian Lindner stated that favors increased competition and reduced bureaucracy instead of taking on new debt for subsidies.
Referring to the intergovernmental consultations, he admitted that “none of what is being discussed will be easy». Public debt will be limited in 2024 to 64% of GDP, from 69% in 2021. “The direction is right. We want to continue it,” he said.
The Bundestag is today deciding on the 2023 supplementary budget in order to comply with the ruling of the Supreme Constitutional Court, which ruled the channeling unconstitutional 60 billion in the Climate and Transformation Fund (KTF) and at Fund for the Stabilization of the Economy (WSF), from emergency borrowing to deal with the consequences of the pandemic.
Source: News Beast
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