Tight financial leeway: When citizens can expect the promised climate money

Tight financial leeway: When citizens can expect the promised climate money

According to a report by www.infranken.de, the federal government has decided to introduce the climate money it promised by 2027 at the latest. The original plan was to pay citizens money to compensate for the increase in the price of CO2. This measure had already been agreed in the coalition agreement. However, financial experts doubt whether the federal government even has enough funds available to pay out the climate money.

However, the federal government has announced that the technical requirements will be created by the end of 2024 to transfer the money directly to citizens' accounts. In addition, consideration is being given to politically restructuring the funding landscape in order to finance the climate money.

According to www.infranken.de, representatives of the federal government see financial leeway as being severely restricted due to the Federal Constitutional Court's budget ruling. In addition, funds from the CO₂ price have already been earmarked for funding measures and subsidies, which calls climate money into question.

Leading representatives of the FDP and the Green Youth expressed controversial views on this decision. While the FDP says that the climate money could be paid out from 2025 if subsidies in the climate and transformation fund are eliminated, the co-head of the Green youth organization, Svenja Appuhn, describes the decision as a slap in the face for climate protection.

According to information from www.infranken.de, private households have been paying around three quarters of the payments for CO₂ pricing since 2021, which is why consumer representatives are demanding that the income from this be reimbursed to all consumers via climate money.

It remains to be seen how the introduction of climate money will affect the market and the financial sector. If the announced measures are implemented, this will probably lead to relief for consumers, while at the same time it could have an impact on the tax budget and support programs. However, the exact political and economic outlook remains to be seen and can only be viewed speculatively.