By Andrea Thomas
BERLIN (Dow Jones)–Chancellor Olaf Scholz (SPD) sees his government in an arduous political discussion about resolving the current budget crisis that was triggered by the ruling of the Federal Constitutional Court. Scholz said at the federal government’s digital summit in Jena that he was not “without confidence.” The federal government remains committed to transformation.
“We want to further advance the modernization of our economy. This includes semiconductors and the establishment of the semiconductor industry. This also includes the transformation that is associated with industrial modernization processes in classic industries,” said Scholz in a discussion group when asked about the solution Budget crisis.
Last week, the Federal Constitutional Court ruled that the federal government was not allowed to reallocate 60 billion euros from the Corona funds to the climate and transformation fund. As a result, the fund is now missing 60 billion that is planned for transformation and climate protection. The government is currently looking for a solution to close this budget gap.
“The answer can’t be given by any AI. We’re not going to shake it out of our hands, we’re going to have to work it out politically with great effort. But that’s our turn. And you don’t see me here as a person without confidence.” said Scholz.
When asked whether there was more clarity after hearing experts in the Bundestag budget committee and whether the debt brake was an option, Scholz said that things now had to be discussed very carefully. “That’s why care comes before everything else,” said Scholz. “That also means that not everyone has to blurt out what’s on their mind at the moment, but that it’s discussed and decided on in a very orderly manner.”
The Chancellor emphasized that the federal budget envisages expenditure of well over 400 billion euros and that the sum is high.
You will have to organize progress by using the most modern technologies. “We will of course also create the framework conditions so that a lot can be invested by the private sector,” said Scholz. Because government investments are only a small part of the much larger investment volume that comes from the private sector.