CSU regional group leader Alexander Dobrindt has warned of tax increases in view of the budget dispute in the traffic light government. He has “no confidence in the FDP that they will fend off further tax hike requests from the Greens and SPD,” said the chairman of the CSU deputies in the Bundestag of the German Press Agency. He criticized: “The fact that the traffic light cannot agree on a budget with absolute record tax revenues for the federal government in 2023 and further tax increases and high levels of new debt are in the air is a clear expression of a lack of financial seriousness.”
The traffic light ministers have been struggling for weeks over the budget for 2024. The spending requests are still significantly higher than the scope that Finance Minister Christian Lindner has identified in the budget. The FDP leader therefore accused the SPD and Greens of having “no common understanding of the realities of financial policy”.
Nevertheless, one does not want to let the criticism from the CSU sit in the traffic light. “The fact that the CSU, of all people, is calling for solid finances is a strong point,” said Christian Dürr, leader of the FDP parliamentary group. After all, the Union significantly increased spending even in the decade of low interest rates without relieving the burden on the citizens. “In view of rising interest rates and historic inflation, the Union’s unsound management is taking revenge twice in the federal budget,” said Dürr. The traffic light government, on the other hand, managed to relieve people and at the same time promote investments in education, climate protection and infrastructure.
What is criticized?
Dobrindt, on the other hand, criticized: “Tax revenue is exploding – VAT revenue is increasing due to inflation, income tax revenue is increasing due to wage settlements.” Instead of talking about tax cuts “so that employees can keep more of their wage increases in their pockets, this traffic light speculates about new debts and tax increases”. Heralds are the increase in inheritance tax in the real estate sector and the five to six billion euro increase in truck tolls, “which consumers will have to pay for.” “The traffic light has thus created the access ramp for further tax increases.”
Dürr dismissed the criticism as incorrect: “It is a mystery to me where Mr. Dobrindt read about an increase in inheritance tax,” he said. “Before you hand out loudly, you should inform yourself.” He is concerned that the Union’s tax policy competence has been lost – which also explains that it is not making any conceptual proposals itself.
Dobrindt also attacked Lindner sharply: “When the Federal Minister of Finance accuses his coalition partners of not recognizing financial realities, that is tantamount to an oath of disclosure,” he said. A government that is heading for a “budget blockade” not only unsettles the economy and society in Germany, but also the European partners. As the largest economy in Europe, Germany needs solidity and seriousness in its finances again. “A budget blockade exacerbates the traffic light imbalance.”
Additional requests of around 70 billion euros registered
Usually, key figures are presented before the final government draft for the budget – Lindner recently announced that he would refrain from doing so this year. The ministers had announced additional requests of around 70 billion euros, for which he sees no leeway if the debt brake is adhered to and tax increases are avoided.
Dobrindt criticized that it was not possible to foresee when a draft budget could be expected. “Obviously the next major conflict is looming within the dispute traffic light.” Lindner is “a household juggler who constantly throws new balls into the air: with core households, shadow households, special assets and other air bookings”. When it comes to the traffic light budget, “there is no black zero in sight. The budget is more like a black hole.” “Black zero” usually refers to the goal of a balanced federal budget without new debt. The debt brake, on the other hand, also allows the federal government to make new loans to a limited extent, depending on the economic situation.
