ROUNDUP: Further discussions about the 2024 budget – no decision in the cabinet

BERLIN (dpa-AFX) – The federal government continues to wrestle with the budget for the coming year on Wednesday. The round of negotiations led by Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) has not yet reached an agreement. According to dpa information, the talks should continue after the cabinet meeting on Wednesday.

Green Party leader Ricarda Lang said in an interview with BR this morning: “I don’t assume that a new draft budget will be decided in the cabinet today, but that a political decision will follow very, very soon.” The traffic light coalition was aiming for a cabinet discussion on Wednesday, at least internally, in order to decide on the budget before the end of the year. However, a decision is also possible in the so-called circular procedure, i.e. in writing.

It is unclear whether the agreement between the three top politicians will also be discussed in a coalition committee, i.e. in a larger group with the party leaders. In any case, the budget committee and only then the Bundestag would also discuss it, the latter probably in a special budget week directly before Christmas. The Federal Council could approve the plans on December 22nd. However, it would also be conceivable that only the budget committee would discuss things before Christmas – and the Bundestag would not approve the budget until January.

Lindner puts the gap in the budget for the coming year at 17 billion euros. It arises, among other things, from the Karlsruhe budget ruling and the effects on various loan-financed special funds. In addition, the planned reduction in electricity tax to relieve the burden on the manufacturing industry and six billion were added to the increased level of basic security. The budget draft from last summer therefore needs to be updated anyway.

Savings in various areas and also the renewed suspension of the debt brake for 2024 are now being discussed. The modernization of the country and the development towards a climate-neutral economy should not be stopped, emphasized Lang. “Because it’s about nothing other than jobs, prosperity and security for our citizens.”

But there will only be solutions if each of the three partners moves. It’s about preventing a state crisis. The red line for the Greens is to make savings for the poorest.

In an interview broadcast by BR on Tuesday evening, Lindner spoke of constructive discussions in the three-party group. “We will make proposals very soon,” he said. The SPD and the Greens insist on a quick conclusion – and he would like to make that possible. “It is clear to me, however, that tax increases must be ruled out,” emphasized Lindner. However, he sees potential for savings in social spending, on which the federal government spends 45 percent of its budget.

The previous arguments for a new emergency resolution to suspend the debt brake in 2024 have not yet convinced him, said Lindner. The SPD and the Greens are currently advocating for this./tam/DP/mis

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