Federal budget unconstitutional - Bavaria also affected? Finance minister complains, funding notices are missing, investment gap is looming

Federal budget unconstitutional - Bavaria also affected? Finance minister complains, funding notices are missing, investment gap is looming

According to a report by www.br.de, CSU General Secretary Martin Huber expressed sharp criticism of the government statement by SPD Chancellor Olaf Scholz following the Federal Constitutional Court's ruling on the federal government's supplementary budget. He described Scholz’s statement that the verdict had no impact on people’s everyday lives as “sheer mockery.” Huber claims that the traffic light government has no more money and that citizens have to pay for decisions such as increased truck tolls, CO2 prices and reduced parental benefits.

However, the decisions made by the traffic light government were largely made before the Federal Constitutional Court's ruling. The effects of the 60 billion euro hole on people's everyday lives remain unclear, but raise questions for the Bavarian state government.

The Federal Constitutional Court ruled that the federal supplementary budget for 2021 was declared unconstitutional. Bavaria also suspended the debt brake at the beginning of the corona pandemic. In 2022, the credit authorization for Bavaria amounted to 5.8 billion euros, part of which was earmarked for the “Corona Investment Program” and the High-Tech Agenda Plus. Bavaria's Finance Minister Albert Füracker claims that the Bavarian budget is constitutional because the 2022 loan authorizations were not used. The Greens, SPD and AfD in Bavaria doubt this and see the Corona aid being misused.

There is also a lack of funding approvals from the federal government amounting to 1.3 billion euros for investments in the Bavarian economy. Economics Minister Hubert Aiwanger emphasized that Bavaria urgently needs this money and is pushing for the federal government to continue funding the promised transformation projects despite the budget ruling.

The lack of funding could have a negative impact on the planned investments in the Bavarian economy. If the federal government does not provide the promised funds, this could lead to delays and restrictions in important economic projects. In addition, there is a risk that necessary modernization and transformation projects will not occur due to a lack of financial resources, which could affect the competitiveness and future prospects of the Bavarian economy.