“Our solidarity with our European neighbors is built to last.”
(Photo: Reuters)
Berlin Finance Minister Christian Lindner has given the citizens a firm promise of further relief in view of the high energy prices. “As a coalition, we agree: Further relief will come,” said the FDP leader on Tuesday in the budget debate in the Bundestag.
The measures would have to take effect quickly, help to counteract current burdens, be time-limited and coordinated in a European context. The coalition is currently discussing different models, he expects that in the end there will be a package with different measures, “because the living conditions in our country are also very different”.
Lindner pleaded for further help for recipients of basic security in view of the rising food costs. The broad middle of society is also burdened with mobility. Different exemptions are conceivable here.
Previously, Lindner had suggested a subsidy when refueling. After that, funding “with the watering can” without a social component was often criticized. Ultimately, it is the goal that is important, not the individual measure, emphasized Lindner.
Top jobs of the day
Find the best jobs now and
be notified by email.
For the German economy, Lindner wants a moratorium on burdens because of the Ukraine war. Everything must be avoided “that could further burden people and companies in this situation,” said the FDP politician. Bureaucratic burdens should take second place to securing economic development.
Suspension of the debt brake in 2022 should also be justified with war
According to Lindner, the federal government will do everything to prevent Germany from falling into stagflation. A period of no economic growth with high inflation would be a danger, said the FDP leader. “Prices would rise, but the economy would not grow.” The federal government will use its fiscal options to prevent such a scenario.
No one can yet quantify the effects of the war in Ukraine on the economy. No one knows how long this economic crisis will last.
The federal government wants to justify the renewed suspension of the debt brake this year with the Ukraine war. The corresponding application to the Bundestag will be adjusted as soon as the government can present the planned supplementary budget, Lindner announced. The emergency situation, which is necessary according to the Basic Law to suspend the debt brake, will then be justified not only by the corona pandemic but also by measures to deal with the Ukraine war.
The FDP politician emphasized that the supplementary budget will only contain measures related to the Ukraine war. This included relief for citizens and businesses as well as help for refugees inside and outside of Germany.
The budget is to be approved in early June
Lindner opened the first week-long consultation of the Bundestag on the federal government’s draft budget for 2022 and on financial planning up to 2026. The budget is to be approved at the beginning of June. By then, a supplementary budget should be in place, with which the new debt should increase again.
So far, the draft provides for 99.7 billion euros in new debt in the core budget and a special fund of 100 billion euros for the Bundeswehr. This increases the new debt by almost 200 billion euros. This mark should be significantly exceeded with the supplementary budget.
Lindner promised Ukraine long-term help even after the end of the Russian war of aggression. “Our solidarity with our European neighbors is long-term. And that is why we need an international Marshall Plan for Ukraine,” said the Liberal. “We hope for peace soon. But when it is reached, we will still be there to support the reconstruction, the work for a good future and the way to a partnership with the EU.”
After 1945, Western Europe, which had been destroyed by the Second World War, was rebuilt with the Marshall Plan. The US spent billions on it. The Federal Republic of Germany also benefited greatly from this.
More: That’s why Secretary of Defense Lambrecht has a thankless post