The CDU is pushing for a delay in deciding on the 2024/25 state budget until the start of the new year. Fears circulate around the federal government potentially halting or reducing financial transfers to the states following the Constitutional Court's ruling on the climate and transformation fund. Chair of the opposition CDU parliamentary group, Franz-Robert Liskow, expressed concern over the legal repercussions of this ruling, as clearly defined programs fully or partially funded by the federal government remain unclear. Such a budget launched this year may prove futile, being largely obsolete by February.
Mecklenburg-Vorpommern's double budget is set for adoption by the state parliament in early December, with a final Finance Committee discussion planned for this week. The Federal Constitutional Court halted the traffic light's plans to divert €60 billion from unused coronavirus loans to the Climate and Transformation Fund, prompting the federal government to seek savings.
The strict interpretation of the debt brake in Germany by the court resulted in the nullification of the Exception Clause in the Second Supplementary Budget Act 2021, effectively foreclosing the government's borrowing strategy. This loss of credit authorization has significantly reduced financial flexibility and impacted budget planning, shifting the political debate towards the availability of funds.
The ruling has led to disagreements within the coalition government, ultimately causing the FDP's departure from the coalition over the 2025 budget. Debate surrounding the need to modernize the debt brake to address current economic challenges is ongoing, with various institutions putting forth proposals.
The CDU's advocacy for postponing the decision on the state budget may stem from the desire for more flexibility in budget planning and system adaptation to accommodate these constraints. Prioritizing expenditures on critical areas like education, transport, health, and domestic security may involve temporary exemptions or adjustments to the debt brake to protect these vital investments from serious impact.
