Christian Lindner: See savings potential in the social budget, savings measures planned for 2023-2025

Christian Lindner: See savings potential in the social budget, savings measures planned for 2023-2025

According to a report by www.deutschlandfunk.de,
Federal Finance Minister Christian Lindner plans to suspend the debt brake only for 2023. He plans to present the cabinet with a draft supplementary budget for 2023 in order to subsequently legally secure loans for energy price brakes that have already been paid out. This step is being taken in consultation with Federal Chancellor Scholz and Vice-Chancellor Habeck and results from a budget ruling by the Federal Constitutional Court, which declared the transfer of old emergency loans to the climate fund to be unconstitutional.

As a financial expert, I see this measure having far-reaching effects on the market and the financial industry. The suspension of the debt brake for 2023 suggests that the federal government is facing significant financial challenges caused by the consequences of the COVID-19 pandemic, the energy crisis, inflation, the war in Ukraine and the situation in the Middle East. The request for 45 billion euros through a supplementary budget shows that the financial burden is considerable.

The decision to temporarily suspend the debt brake could also have long-term effects on the economy. The debt brake served as an instrument to maintain budget discipline and limit the state's debt. Their temporary suspension could unsettle the financial markets, which could lead to increased bond yields and a possible downgrade of Germany's credit rating.

SPD leader Lars Klingbeil's demand to suspend the debt brake for 2024 shows that financial challenges could also exist beyond 2023. As a financial expert, I see the need for a comprehensive analysis of the economic situation and the development of long-term solutions to ensure the country's financial stability.