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Left accuses black-red of risky budget policy

Left accuses black-red of risky budget policy

,   and  ASMedia
2 min read
Left accuses black-red of risky budget policy
Left accuses black-red of risky budget policy

Finances - The Left Slams Black-Red's Risky Budget Policy

The Left Party's parliamentary group in Berlin is skeptical of the black-red budget plans. Anne Helm, the group's leader, deemed the budget unambitious and dangerously risky on Tuesday - particularly for the city's social infrastructure and given the challenges presented by climate change. Helm berated the budget for pushing Berlin over a billion-dollar cutting point past 2025, hinting at drastic reductions to follow.

Berlin should steer clear of another Sarrazin-era, Helm warned. Thilo Sarrazin, once the SPD's Finance Senator in Berlin (2002-2009), championed strict austerity measures.

Steffen Zillich, a budget expert from the Left, blasted the SPD for utilizing reserves to fund the budget. The reserves, accumulated under the red-green-red senate, were thoughtfully constructed in anticipation of rising construction costs and higher energy expenses.

Zillich also leveled criticism at the planned flat-rate expenditure cuts, totaling nearly four billion euros. These cost-saving measures threaten Berlin's social infrastructure and culture, he warned.

Given the situation, Zillich suggested the Left's alternatives. He advocated for a tax increase and a reallocation of funds to areas such as land purchase tax, overnight accommodation tax, and second home tax. Additionally, he proposed enabling state-owned companies to secure credit financing and postponing corona loan repayments, with savings reserved for IT investments. Berlin's state parliament is set to vote on the 2024/2025 double budget next Thursday.

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  • Berlin's Left accused the black-red coalition's budgetary policies of being risky, with the potential for substantial cuts to social infrastructure beyond 2025.
  • Former SPD Finance Senator Thilo Sarrazin's tenure (2002-2009) was characterized by purse-tightening policies. The Left cautioned against another Sarrazin-era.
  • Steffen Zillich, a budget expert from the left, criticized the SPD for using reserves to fill the budget. The financial reserves were strategically set aside in anticipation of mounting construction and energy costs.
  • Zillich criticized the proposed flat-rate expenditure reductions, which totaled almost four billion euros, and their potentially devastating impact on Berlin's social infrastructure.
  • Instead of opting for cuts, the Left proposed adopting a more progressive taxation strategy, including increased taxes in selected areas, to ease financial burdens.

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Bonus Insights:

  1. Criticism of the Austerity Measures
  2. The Left Party condemns the proposed austerity measures, fearing that vulnerable groups like educators, scientists, and civil servants will bear the brunt of the cuts, resulting in reduced services and increased hardship for citizens.
  3. Impact on Social Infrastructure
  4. Critics like the Left Party argue that the budget cuts will negatively impact Berlin's social infrastructure, with essential services such as schools, hospitals, and other social welfare programs suffering from reduced funding and deteriorating quality.
  5. Focus on the Root Causes of Migration
  6. Instead of solely providing temporary solutions, the Left Party advocates for development aid that tackles root issues underlying migration. By addressing these overall challenges, they aim to create conditions conducive to stable societies and long-term sustainability.
  7. Prioritization of Social Spending
  8. The Left Party emphasizes the importance of prioritizing social spending over austerity measures, advocating for investments in education, healthcare, and social welfare programs to maintain a high quality of life for Berliners.
  9. Sustainable Initiatives
  10. Protecting the environment and reinforcing sustainability beyond just cash reserves is crucial for Berlin, as it serves as a leading green city. By promoting environmental and sustainable projects, the city can improve its infrastructure and future-proof itself against potential challenges.
  11. Peaceful, Equitable Policies
  12. The Left Party's broader stance includes embracing a peaceful and equitable foreign policy and domestic economic policies that avoid militarization and war preparations. By pursuing these sentiments, they aim to foster a more harmonious world order.

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