Klingbeil’s openness to credit-financed special funds
Berlin (dpa) – In the budget dispute within the traffic light coalition, the SPD continues to push for more options for new debts. Party leader Lars Klingbeil made it clear that his party can imagine a credit-financed special fund for investments instead of suspending the debt brake.
„First, all ministries have to see where they can save. But it is also clear that we cannot cut 30 to 40 billion from a core budget,“ Klingbeil told the „Süddeutsche Zeitung“. He expects that all options will now be discussed „without ideology“. „The BDI has just proposed a special fund for investments. The SPD would be ready to discuss it immediately.“
The Federation of German Industries (BDI) had criticized a huge investment backlog in Germany and therefore proposed billion-dollar special funds – i.e., credit-financed extra pots alongside the federal budget and outside the debt brake.
Struggle over budget draft
The traffic light coalition of SPD, Greens, and FDP has been struggling for months to draft a budget for the coming year. A double-digit billion-dollar gap in budget planning needs to be closed. FDP Finance Minister Christian Lindner insists on adhering to the debt brake – while pressure from the SPD has recently increased to use an exception and suspend it. However, Lindner also rejected the BDI’s proposal for special funds.
„If we now set the right impetus with the budget, we will see decent growth next year,“ Klingbeil argued. „If cuts are made now and new uncertainty arises, that will stifle growth. This cannot be in the interest of the FDP Finance Minister either.“ And no one can deny that the war in Ukraine is an exceptional situation. In exceptional situations, the Basic Law allows for the suspension of the debt brake – i.e., the upper limit for loans in the federal budget.