Brandenburg's reaction to the Karlsruhe budget ruling: How the Ministry of Finance wants to secure the aid package

Brandenburg's reaction to the Karlsruhe budget ruling: How the Ministry of Finance wants to secure the aid package

According to a report by www.welt.de After the budget ruling of the Federal Constitutional Court, Brandenburg is faced with the challenge of securing its aid package worth up to two billion euros. For this purpose, an exceptional emergency situation should be determined as a result of the war in Ukraine so that the aid package is not declared unconstitutional. Finance Minister Katrin Lange is also planning a supplementary budget for 2024 to secure the measures from the Brandenburg package.

After the budget verdict, Brandenburg wants to secure its aid package. The measures financed must be directly related to the declared emergency. The declaration of emergency for 2024 should be repeated so that the aid package is not declared unconstitutional. The AfD parliamentary group is suing against the Brandenburg package, and a decision is expected to be made next year. The Federal Constitutional Court previously declared the reallocation of 60 billion euros in the 2021 budget to the climate and transformation fund null and void and ruled that the state is not allowed to set aside emergency loans for later years. These developments can also have consequences for Brandenburg, especially with planned climate protection projects.

It is unclear exactly what financial cuts there will be, but it is expected that the Brandenburg package will be smaller and borrowing reduced. The emergency determination is a prerequisite for suspending the debt brake, which is currently being discussed in the federal government for the current year. The finance minister emphasized that the debt brake was a fair-weather regulation and was out of time.

These developments could trigger uncertainty in the financial market and the financial sector, as the securing of the aid package and the associated financial cuts lead to changes in budget policy. It remains to be seen how these decisions will affect the financial market in Brandenburg and beyond.