German Finance Minister Christian Lindner said he will present an additional budget for 2023 to the Council of Ministers next week in order to ease the budget crisis caused by the Constitutional Court’s decision that the reallocation of the government’s unused €60 billion coronavirus fund is illegal. .
On October 15, the German Constitutional Court ruled that the coalition government’s decision to transfer an unused €60 billion loan from the Covid-19 pandemic period (from the 2021 budget) to the Climate and Transition Fund was unconstitutional.
The court’s decision forced the government to review spending plans and restrict private funds from outside the budget.
Lindner indicated in his statement to reporters in Berlin that he will present an additional budget for 2023 to the Council of Ministers next week in order to alleviate the budget crisis that occurred after the court’s decision.
Lindner indicated that he intends to start negotiations with government partners on the spending plan for next year, and said: “From now on, we will constitutionally guarantee expenditures, especially the electricity and gas ceiling. This additional budget is needed for this purpose.” He said.
On the other hand, according to the Ministry of Finance, Lindner’s additional budget proposal would also include the suspension of the debt brake mechanism in the Constitution for 2023.
Christian Lindner ordered a freeze on the Climate and Transition Fund’s budget on November 15, when the German Constitutional Court’s decision was announced.
The coalition government formed by the Social Democratic Party, the Green Party and the Free Democratic Party is trying to prepare the federal budgets for 2023 and 2024 in accordance with the constitution, following the court decision.
Economists say the court’s decision leaves the federal government facing its biggest economic policy challenge this legislative session.
On the other hand, the session that was scheduled to be held today regarding the federal budget for 2024 was cancelled.