Budget Committee Hits Pause on Final Deliberations
Late-Night Decision
Yesterday, the Federal Constitutional Court deemed a special 60-billion-euro fund, a creation of the federal government, unconstitutional. This unexpected ruling left many questions unanswered during the final deliberations on the new budget in a marathon session. The CDU accused the ruling coalition, known as the traffic light government, of blatantly ignoring the ruling.
Midnight Break
The Bundestag Budget Committee decided to halt their deliberations on the draft budget for 2024 at around 3 am. According to the coalition budget officers - Dennis Rohde, Sven-Christian Kindler, and Otto Fricke – the content aspects of the ministries' budgets had already been covered in nearly 15 hours of discussion. A further session, planned for next Thursday, will continue the talks.
Virtual Expert Hearing
Before the special session, a digital expert hearing will take place on Tuesday. The aim is to explain how the recent Constitutional Court ruling affects the budget. The 60-billion-euro fund in question has been cancelled due to its unconstitutional nature, and the implications for the 2024 budget remain unfathomable.
The CDU's Perspective
The CDU, along with the CSU, wanted to delay the final deliberations due to the unclear influence of the Constitutional Court ruling on the budget. According to their plans, the discussion on the individual budget sections will continue in the special session, with 32 proposed budgets for interest and 60 for general financial administration under consideration.
Ampel Politicians' Response
Section 60, which includes yet-to-be-decided key projects, contains one such crucial element – more military aid for Ukraine in the following year. The Ampel politicians claim that they are taking the time to analyze the ruling before making a decision. The opposition CDU/CSU, however, accuses the coalition of sticking to the budget resolution despite the Karlsruhe ruling.
CDU's Heated Response
CDU leader Friedrich Merz has criticized the coalition's budget policy, suggesting potential cuts in areas such as basic child protection. He argued that the 500-million-euro basic child insurance unnecessarily creates 3,000 new jobs in the public sector. Merz opened the door to a potential lawsuit against the 200-billion-euro defense shield to combat skyrocketing energy prices.
Examining Consequences
The German government is also evaluating the impact of the Carlsruhe ruling on the Economic Stabilization Fund (WSF), citing it as a "double whammy" in the face of the war in Ukraine. Approximately 200 billion euros were lent to the WSF under suspension of the debt brake in 2022.
The CDU-CSU Criticism
The traffic light coalition's handling of the Constitutional Court's ruling on the unconstitutional 60-billion-euro fund has drawn criticism from the CDU. Leader Friedrich Merz calls into question the coalition's budget policy and suggests potential cuts in areas like basic child protection.
A disagreement has arisen over the financing of additional military aid for Ukraine, which is scheduled to be discussed together with other crucial projects during the next Budget Committee session. As the federal election approaches, the dispute over Ukraine aid continues to shape German politics.
Enrichment Data
The German government's stance on Ukraine aid is contentious, with disagreements within the ruling coalition over the financing mechanism and a strong public desire for support. The German Parliament's Budget Committee has requested an additional €3 billion in military aid, but this proposal has yet to gain approval.
Sources
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