Financial expert warns: Traffic light government is heading for the next financial catastrophe - Federal Audit Office sounds the alarm

Financial expert warns: Traffic light government is heading for the next financial catastrophe - Federal Audit Office sounds the alarm

According to a report by www.merkur.de, The traffic light government continues to struggle over the budget. At the same time, funds from the EU reconstruction fund will not be siphoned off. Now the Federal Audit Office is warning.

The current situation of the traffic light coalition with regard to the federal budget and funds from the EU reconstruction fund poses major challenges for the financial sector. According to Finance Minister Christian Lindner, around 17 billion euros are missing from the federal budget for the coming year following a ruling by the Federal Constitutional Court. The debate about possible austerity measures and tax increases has broken out among the coalition members. These uncertainties can lead to volatility in the financial markets and affect investors' confidence in the stability of the German economy.

There is also a risk that the federal government will not receive the money it is entitled to from the EU reconstruction fund on time and in full. Germany is entitled to 26 billion euros from this fund, but only 2.25 billion euros have been transferred so far. The Federal Audit Office warns that billions of euros in payments are at risk if the necessary investments are not made promptly. This could mean that the German economy does not benefit from EU aid to the extent that it would have.

The Federal Audit Office's recommendation to link the release of funds to the achievement of interim goals and the demand for greater control by the federal government could lead to changes in financial policy. Ministries could be given incentives to implement measures quickly and successfully, which would potentially lead to a more efficient use of public resources.

Overall, the uncertainty regarding the federal budget and the EU reconstruction fund could lead to increased risks and a change in financial policy in Germany, which will have an impact on the market and the financial sector. It is important to keep an eye on these developments and be prepared for possible market reactions.