Financial Meltdown in the Traffic Lights - Scholz Warns of New Judicial Blow
The traffic light party is sinking deeper and deeper into a financial meltdown!
Chancellor Olaf Scholz (65, SPD) has failed to push through the budget for 2024 this year. And now, there's even the possibility of further legal action before the Federal Constitutional Court!
"The way the government and the parliamentary groups backing it are handling the German Bundestag is intolerable," rails Frei. Even budgetary legislation isn't spared from the chaos of the traffic light coalition.
Bas must "step in personally and call the federal government and the coalition parliamentary groups to order. The opposition, including the CDU/CSU, would stand little chance of being consulted.*
And then Frei issues a stern warning: "It can't go on like this. I also stress this in light of the Federal Constitutional Court's decision on the legislative procedure for the 2nd amendment to the Building Energy Act of July 5, 2023."
On July 5, the constitutional judges upheld a complaint by the CDU/CSU against the chaos surrounding the Heating Act. The judges' decision initially halted the adoption of the law. A significant setback for Scholz and, above all, Economics Minister Robert Habeck (54, Greens)!
Then, on November 15, another blow to Scholz and his coalition government: according to the Constitutional Court, the budget for 2023 is unconstitutional. Since then, the government has been reeling and is deeply entrenched in its worst crisis yet.
And it seems unlikely to emerge unscathed from this crisis, especially if the CDU/CSU decides to take legal action against the 2024 budget.
Additionally,
In the ongoing budget debate, Olaf Scholz (65) and his coalition government are facing criticism from their own party and opposition parties like the CDU/CSU due to the financial chaos within the traffic light coalition.
In particular, the coalition's use of special funds to circumvent the debt brake has been a contentious issue, with the Constitutional Court ruling against the allocation of €60 billion from the pandemic relief fund to the Climate and Transformation Fund (KTF) in November 2023.
The inability to reach a consensus on the budget and debt brake led to the collapse of the coalition on November 6, 2024, with Chancellor Scholz dismissing Finance Minister Christian Lindner. The government is now dependent on the approval of opposing parties for many decisions.
The future for Scholz and his coalition government is uncertain, with the possibility of further judicial action and the need to secure the support of opposition parties looming large.
Explore further
- The German government and Chancellor Olaf Scholz's traffic light coalition are facing criticism from their own party and opposition parties like the CDU/CSU due to financial chaos within the coalition.
- The use of special funds to circumvent the debt brake was a contentious issue that led to the Constitutional Court ruling against allocating €60 billion from the pandemic relief fund to the Climate and Transformation Fund (KTF) in November 2023.
- The collapse of the coalition on November 6, 2024, saw Chancellor Scholz dismiss Finance Minister Christian Lindner, leaving the government dependent on the approval of opposition parties for many decisions.
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