Lindner Sets Boundaries in Budget Talks - 2024 Budget Remains Up in the Air
Lindner considers tax hikes "foolish," as they could harm economic development, he declared. The FDP wouldn't support loosening the rules for the debt brake, stating, "You can't make an emergency situation seem like normality." Regarding the prospect of extending the debt brake suspension for the 2024 budget, Lindner remained unsure, stating, "I haven't found any compelling arguments yet."
Lindner voices criticism over the proposed increase in the citizens' allowance, deeming it excessive due to high inflation expectations that failed to materialize. Previously, politicians from the FDP and CDU/CSU advocated for cancelling the 12% increase, but the Federal Employment Agency (BA) argued that adjustments were no longer technically feasible as payment processes were already in motion.
Chairman of the FDP parliamentary group in the Bundestag, Christian Dürr, suggests a 0% increase for the following year, arguing it would send the wrong message. He calls for "a fundamental discussion within the coalition about the method of calculating the citizen's income."
The CDU/CSU urges the coalition to urgently revise the citizen's income and abandon the planned basic child benefit, arguing that its rapidly escalating costs are consuming a significant portion of the federal budget (almost 45%). CDU/CSU's parliamentary secretary Thorsten Frei opposed the planned basic child benefit, calling it a "bureaucratic monster" requiring over 5,000 additional administrators. Despite commendable intentions to combat child poverty, the coalition is allegedly following an inappropriate strategy, Frei argued.
A more concentrated focus on household expenditure might result in more thoughtful budget decisions in future discussions. The ARD has highlighted the importance of a responsible approach to financing social benefits during the budget discussions.
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Political leaders in Germany like Lindner and Frei from the FDP and CDU/CSU vehemently oppose tax increases and the renewed suspension of the debt brake for the 2024 budget due to various reasons. These include the need to maintain fiscal discipline and stability, intergenerational fairness, ensuring economic growth and competitiveness, austerity policies for crisis avoidance, and fearing challenges in reforming or repealing the debt brake. The CDU/CSU also advocates for alternative solutions such as significant tax cuts and military spending. The arguments highlight the complexity and challenges associated with reforming fiscal policies, emphasizing the need for prudent budget management and long-term institutional stability in Germany's economic strategy.
