By Angelika Hellemann
Gulp! The traffic lights have to save money – and the schnitzel becomes more expensive for citizens.
The budget holders of the SPD, Greens and FDP have been negotiating for days and nights this week in order to somehow reach an agreement on the 2024 budget. Because: You have to save and cut back because the debt brake applies again.
The negotiations were tough. Each coalition partner still had expensive extra requests.
Shortly before the start of the adjustment meeting (Wednesday, 1 p.m.), in which the Budget Committee will finalize the 2024 federal budget, the traffic light chief budget officers agreed on the distribution of the billions.
BILD learned from household circles: The traffic light will NOT extend the VAT reduction on food in restaurants. From January 1, 2024, the tax office must be paid 19 percent instead of 7 percent. A tax increase of 12 percentage points!
This is a bitter blow for restaurateurs and their customers, as prices for all dishes will rise across the board next year.
During the Corona crisis, the grand coalition between the Union and the SPD reduced VAT in order to save the battered catering industry. Now the help is over.
The FDP publicly insisted on Monday that the tax cut would be extended until New Year’s Eve 2024. However, that would have cost Finance Minister Christian Lindner (44, FDP) 1.8 billion euros.
And so, according to BILD information from negotiating circles, the FDP itself pulled the plug on the extension – clearing the way for the increase.
The budget committee still has to officially decide on all cuts and money transfers in the adjustment meeting (which lasts until early Friday morning).
Despite all the savings, there is one big winner: Defense Minister Boris Pistorius (63, SPD). He gets an extra four billion to support Ukraine with weapons and ammunition. This means that military aid will be doubled and Germany will meet the promised NATO quota for the first time at 2.1 percent.