A ruling by the Federal Constitutional Court threw the government’s budget plans overboard. The renegotiations within the cabinet dragged on for days. Now there has been a breakthrough.
The leaders of the German traffic light coalition, consisting of the SPD, FDP and the Greens, have reached an agreement in their talks on the 2024 federal budget. As government circles said on Wednesday, a press statement is scheduled for Wednesday at noon at the Federal Chancellery in Berlin .
A ruling by the Constitutional Court in Karlsruhe almost four weeks ago meant that a double-digit billion dollar gap in the 2024 budget had to be closed.
There was a gap of 17 billion
Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) have since discussed how to close a 17 billion euro hole in the budget for the coming year. Until recently, the SPD called for the debt brake to be suspended next year as well. But the Liberals rejected this out of hand.
The court forced politicians to take action
It also discussed how investments in climate protection and the modernization of the economy can be made possible despite the ruling. 60 billion euros are missing from the so-called climate and transformation fund, which was already heavily planning projects for the coming years. For the coming year alone, this amounts to 13 billion euros.
The Karlsruhe judges had declared a reshuffle in the 2021 budget invalid and ruled that the German government could not reserve emergency loans for later years.
Source: Krone
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