Financial expert analyzes the new federal budget for 2024 and the effects on the economy and consumers

Financial expert analyzes the new federal budget for 2024 and the effects on the economy and consumers

According to a report by www.tagesschau.de,

The parties in the traffic light coalition have argued for weeks about tough austerity measures. The Budget Committee has now approved the budget for 2024. The Bundestag and Bundesrat still have to make a final decision on this. The budget provides for spending of 476.8 billion euros and new loans of around 39 billion euros.

The Budget Committee's decision to allow the debt brake to take full effect again could have an impact on the market and the financial sector. The planned higher taxes on flights and the CO2 price for refueling and heating could increase consumer spending. This could lead to lower purchasing power and a decline in consumption. In addition, the higher costs could weigh on the construction and agricultural sectors, which could lead to price increases for agricultural products.

The planned investments in climate protection and the move away from subsidies could impact various sectors of the economy. For example, companies that build climate-friendly new buildings could benefit, while others that depend on subsidies could suffer losses. The planned changes in agricultural policy could also lead to massive protests and affect the supply of agricultural products.

Compliance with the debt brake with the possibility of approving additional loans for international support shows that the government's financial stability should be maintained. However, it remains to be seen how these measures will affect economic development and the financial sector.