威力彩玩法

News
24 Nov 2023, 12:43
Benjamin Wehrmann

German states fear debt brake鈥檚 climate impact as federal gov鈥檛 suspends rule again

Die Welt / Stern / NDR / S眉ddeutsche Zeitung

Governments in Germany鈥檚 federal states are concerned that the recent ruling by the country鈥檚 highest court declaring parts of the federal government鈥檚 budget planning unconstitutional might impact the funding of state projects as well. While the loss of 60 billion euros planned for the federal government鈥檚 Climate and Transformation Fund (CTF) does not directly touch upon the state governments鈥 budgets, many projects are built on the assumption that the federal government will co-fund them with money from the CTF. Andreas Dressel, finance senator of the city state of Hamburg, said 鈥渃ompensating for the loss in federal funds by using Hamburg鈥檚 budget will generally not be possible due to the dramatic financial situation,鈥 newspaper Die Welt聽. According to state government colleagues of the Social Democrat (SPD) politician, this could impact plans for a hydrogen grid for industry in the northern port city or the conversion of a former coal plant into a hydrogen production site, for example.

The mayor of city state Berlin, conservative Christian Democrat (CDU) politician Kai Wegner, said that while the so-called debt brake to cap new government lending was a good concept in principle, its current interpretation made it a 鈥渇uture brake.鈥 Wegner said there would be certain 鈥渕ega demand鈥 areas for funding, which include climate action, the energy transition or mobility. 鈥淲ithout investments, our future will be crumbling,鈥 he warned in an聽聽with news magazine Stern. In the northern state of Schleswig-Holstein, parliament adopted a motion by the CDU-led government for declaring a financial emergency in 2023 and the following year to circumvent the rule. The funds are supposed to finance projects that include a battery factory built by Swedish company Northvolt, public broadcaster NDR聽.

The federal government鈥檚 finance minister, meanwhile, said that Germany as a whole will suspend the debt brake rule in 2023 again, as it already did in previous years due to the coronavirus pandemic. Christian Lindner from the pro-business Free Democrats (FDP) said the step was necessary to ensure the implementation of policies, such as the energy price relief for households and companies introduced in response to the energy crisis. The government would have to transfer money from the CTF into the core budget, meaning it can no longer remain within the debt brake鈥檚 ceiling of 0.35 percent of GDP in new lending, newspaper S眉ddeutsche Zeitung聽. 鈥淚 consider it my task to wipe the slate clean,鈥 Lindner said, arguing this was necessary to put the energy price brakes on a constitutionally sound footing.

All texts created by the 威力彩玩法 are available under a . They can be copied, shared and made publicly accessible by users so long as they give appropriate credit, provide a link to the license, and indicate if changes were made.
« previous news next news »

Ask 威力彩玩法

Researching a story? Drop 威力彩玩法 a line or give us a call for background material and contacts.

Get support

+49 30 62858 497

Journalism for the energy transition

Get our Newsletter
Join our Network
Find an interviewee