Among the ministries that will have to negotiate their funds are the Foreign, Family, Home and Transport departments, while the Defense Ministry is expected to eventually be exempt from the cuts.
With personal intervention of chancellor disagreements between ministers should be resolved about the funds allocated to them 2024 budgetafter Finance Minister Christian Lindner failed to draw up an austerity budget as planned, closing a €20 billion gap.
According to the newspaper Die Welt, Olaf Solz will soon hold tripartite meetings with Mr. Lindner and about half of the government ministers, with the aim of getting the cabinet’s draft budget approved on July 5, which is also the last one before the summer break. Among the ministries that will have to negotiate their funds are the Foreign, Family, Home and Transport departments, while the Defense Ministry is expected to eventually be exempt from the cuts.
WELT also points out that the unusual process of intergovernmental negotiations has also been agreed with Vice-Chancellor and Economy Minister Robert Habeck, with the three coalition parties (SPD, Greens, FDP) agreeing to draw up a budget within the framework of the “debt brake”, the which is provided for by the Constitution, but had been lifted due to the extraordinary expenses to deal with the consequences of the coronavirus pandemic and the energy crisis. In this context, the new borrowing of the federation should range between 15 and 18 billion euros.
One of the aggravating factors for next year is the shortfall in tax revenues: the federal government expects 13 billion euros less than forecast in the fall of 2022. In addition, Liberals (FDP) and Greens are at odds over the tax breaks the which concern industries that burden the environment, such as diesel vehicles and company cars, while the disagreement is also strong on the proposed cut by the Ministry of Finance of the funds that will be allocated to the federated states.
The impasse in the federal budget and the need for the chancellor’s intervention is also reflected in the German media: “Chancellor, you take charge!”, is the Sueddeutsche Zeitung’s headline on the matter, while BILD writes “Chancellor takes on the budget” and WELT “Now the chancellor will personally cut the expenses of his ministers”.
Source :Skai
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