Many ministerial colleagues want to spend more money, Christian Lindner absolutely wants to comply with the debt brake.
(Photo: dpa)
Berlin Christian Lindner (FDP) sees himself as a good example. “We need to get out of debt. In addition, I am also considering desirable but not necessary projects,” said the Federal Finance Minister of the “image”. That’s why he decided not to expand his ministry.
The FDP boss is thus setting an example in the budget dispute. He had had to postpone the submission of the key figures for the 2024 budget. Many ministerial colleagues want to spend more money, Lindner absolutely want to comply with the debt brake.
Discussions are currently going on in the background about how both can go together: complying with the debt rule and realizing the heart projects of the traffic light. According to Handelsblatt information from coalition circles, the government is also working on an austerity package to free up funds for projects. The coalition partners are targeting funding programs and subsidies. “Everything is put to the test,” says one member of the government.
However, the austerity package should not be massive, in the end it should be more in the single-digit billion range. A coalition partner nevertheless speaks of a “change in mentality” in the Federal Cabinet. “It is slowly dawning on ministers that the government needs to limit itself.”
The many spending requests that the ministries have announced do not match the tense cash situation. According to a paper by the Ministry of Finance, which is available to the Handelsblatt, there is currently a shortfall in coverage for the permissible net borrowing of 14 to 18 billion euros for “the 2024 budget”.
Additional expenditure of up to 40 billion euros
For example, the new citizens’ benefit and the housing benefit reform have an impact, as well as tax relief, help for the federal states with refugee costs, securing the energy supply as well as higher personnel expenses and higher interest rates. According to the paper, all additional expenditures amount to 36 billion to 40 billion euros. On the other hand, there is only higher tax revenue of 18 billion euros and a slightly higher level of debt of around four billion euros.
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That’s why the traffic light wants to get to the expenses. Chancellor Olaf Scholz (SPD) explained in an interview with the Handelsblatt that he saw potential for savings in “many places” without being more specific. Economics Minister Robert Habeck (Greens) had called for the reduction of environmentally harmful subsidies. He didn’t want to say which either.
According to the Federal Environment Agency, the volume of environmentally harmful subsidies was 65 billion euros. At the same time, the federal government is also subsidizing climate protection with ever larger sums. The federal government also spends a good amount on funding programs. According to a list by the FDP parliamentary group, the volume was around 27 billion euros.
However, the reduction of subsidies is difficult to enforce. Lindner has already stated that he will not touch the company car privilege. Like many other subsidies, the distance allowance is also politically untouchable. Other grants are less competitive, but also bring in significantly less money.
This also applies to Lindner’s waiver of the extension of the Ministry of Finance, which was estimated at 500 million euros. Nevertheless, there is praise for this even from the SPD: “What the state demands of others, it must do itself,” says SPD housekeeper Andreas Schwarz. You can’t announce that home office is a working model of the future and at the same time plan extensive new office buildings yourself. The waiver is absolutely correct, says FDP chief housekeeper Otto Fricke. “I expect that other houses will follow the good example.”
More: Reader debate – Is it right that Christian Lindner insists on compliance with the debt brake?