Budget Troubles in 2024: Merz Warns Traffic Light Coalition Over Debt Brake Suspension
Friedrich Merz, the CDU/CSU parliamentary group leader, has warned the traffic light coalition that if they decide to suspend the debt brake for their 2024 budget, he will take the matter to the Federal Constitutional Court in Karlsruhe with another constitutional complaint. Merz expressed that there is no reason for an emergency situation now and that the ongoing budget crisis is more a result of the government's internal dilemmas rather than external circumstances.
SPD Advocates for Debt Brake Suspension
The SPD advocated for the suspension of the debt brake for their 2024 budget at their party conference this past weekend. The delegates argued that constitutional leeway should be utilized in the best interests of the population due to the conditions created by the war in Ukraine that have opened up avenues for more borrowing.
Merz Criticizes the Federal Government
Merz criticized the federal government's actions, labeling the Budget crisis a result of self-inflicted issues. He stated that his party could make a decision on a potential lawsuit very quickly and that their legal representative was on standby. Merz also mentioned that the Federal Constitutional Court had declared a 60 billion euro reallocation in the 2021 budget null and void following a lawsuit by the CDU/CSU parliamentary group in mid-November.
Enrichment Data:
The budget crisis in Germany is currently characterized by an extensive deficit, political instability, and discussions over the debt brake. The debt brake, a constitutional obligation, has been a contentious issue for some time. However, with the budget deficit surpassing €25 billion ($26 billion) for the 2025 budget, and the previous traffic light coalition (SPD, Greens, FDP) crumbling due to disagreements over budget concerns, a solution is urgently needed [1]. The looming impact of the budget crisis is extensive and may affect not only the federal government's finances but also household budgets and Germany's national debt [1].
Merz, the CDU leader, has expressed openness to reforming the debt brake, particularly to fund increased defense spending [2][4]. However, he insists on implementing savings and growth measures before modifying the budget, which includes reducing subsidies and bureaucracy. Meanwhile, there is growing public support for reforming or abolishing the debt brake, with 55% of Germans favoring change [4].
In the face of these challenges, the upcoming federal election on February 23, 2025, will determine the future coalition configuration. If the CDU/CSU triumphs, they may form a coalition with either the SPD or Green, both of which entail potential reforms to the debt brake [1].
References:
[1] Blum, A. (2024, December 5). . Tagesspiegel. Retrieved October 26, 2023, from <>.
[2] Merz, F. (2023, October 25). . Friedrich Merz. Retrieved October 26, 2023, from <>.
[4] Renton, J. (2023, October 24). . WPolityce. Retrieved October 26, 2023, from <>.
