Did Finance Minister Lindner stop a multi-billion dollar aid program for low earners? The FDP boss now denies a corresponding report and says that, on the contrary, he is even in favor of such a relief.
Federal Finance Minister Christian Lindner has rejected the report that he is said to have stopped a new aid program for low earners. According to the “Bild” newspaper, according to information from coalition circles, it should have a volume of five billion euros. Accordingly, Chancellor Olaf Scholz wanted to present it on Friday, Lindner had prevented that. This representation is “inaccurate,” said Lindner. He did not prevent any relief for low earners – “on the contrary, I propose it”. He referred to his plans to dampen or prevent so-called cold progression, in which salary increases are eaten up again by rising tax rates. On Twitter, Lindner added: “For 2023, I propose, among other things, a higher basic allowance and a fair tariff for wage and income tax!” This plan is “compatible with the debt brake”.
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 do business within the framework prescribed by the constitution,” said the FDP leader. “Some are actually speculating that there will be another exception to the debt brake. 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”, which should expand the circle of those 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.
