Scholz’s plan prevented
Lindner should block low-income help
7/25/2022 8:59 am
Chancellor Scholz wants to relieve low-income households with an aid package worth millions. Finance Minister Lindner, however, opposes the presentation of the program. You have to prevent additional spending in order to comply with the debt brake, said the FDP boss.
According to media reports, Federal Finance Minister Christian Lindner prevented Chancellor Olaf Scholz from presenting a new aid program for low earners. Scholz wanted to present the spending package worth around five billion euros on Friday, according to the “Bild” newspaper, referring to coalition groups. However, Lindner opposed the plans, after which Scholz was unable to provide any specific information about new aid.
Lindner therefore wants to prevent additional spending next year with a view to the debt brake. The finance minister argued that there was hardly any room for additional spending in the federal budget. “We will and will have to operate within the framework prescribed by the constitution,” said the FDP leader. “Some are actually speculating that there will be an exception to the debt brake again. This is based on the misunderstanding that general political projects and wishes can then be financed. But that is legally impossible.” Labor Minister Hubertus Heil had previously made the planned return to the debt brake from 2023 subject to the economic situation.
On Friday, Scholz announced a rescue package for the ailing energy company Uniper, which will mean that gas prices for consumers will continue to rise in the medium term. As compensation, the chancellor held out the prospect of further relief for citizens and companies. Among other things, he announced a “major housing benefit reform” that would expand the group of people entitled to housing benefit.
The debt brake, which has been enshrined in the Basic Law since 2011, aims to ensure that federal and state budgets get by without income from loans. For the federal government, net borrowing is limited to 0.35 percent of gross domestic product. In “extraordinary emergency situations”, however, the Bundestag can suspend the debt brake, as in 2021 and 2022 due to the Corona crisis.