Budget consultations: Habeck proposes debt-financed special funds to relieve the burden on companies

Enlarge image

Economics Minister Habeck: "Economic Opportunities Act times 10, maybe times 50, to move this country forward"

Photo: Hannes P Albert / dpa

Federal Minister of Economics Robert Habeck has brought into play a special fund worth billions to relieve the burden on companies. During the budget discussions in the Bundestag, the Green politician offered the Union talks about the introduction of a special fund to solve structural problems. Because the debt brake in the traffic light government should be adhered to through a coalition agreement, this is a possible way out, he said. Habeck mentioned, for example, the possibility of creating tax credits and tax depreciation options.

The Green politician did not give an exact volume. Habeck spoke of an “economic opportunity law times 10, maybe times 50, to move this country forward.” After the Russian war of aggression against Ukraine, a special fund worth 100 billion euros was created for the Bundeswehr with the necessary consent of the Union.

Criticism also from the traffic lights

Habeck's proposal for a debt-financed special fund was immediately rejected within the coalition. FDP parliamentary group deputy Lukas Köhler said Habeck's proposal to reduce tax burdens for companies was worth considering. The framework conditions for greater economic growth must be improved. However, Köhler made it clear that he believes the option of more debt is wrong.

Union parliamentary group vice-president Jens Spahn said that before Habeck offers the Union talks, he should first ensure cohesion in the coalition. Habeck has been in power for two years and the result is a recession in Germany. »Germany as a location is in danger.«

Spahn also criticized the fact that the federal government had not sought discussions with the states in advance about the already planned Growth Opportunities Act. Tax relief is planned for companies with a relief of seven billion euros per year. However, the Federal Council blocked the law because it led to a loss of income for the states. The state chamber had called the mediation committee of the Bundestag and Bundesrat. This will meet in just under three weeks.

In 2023, Germany was the only major western industrial nation to have shrunk economically. Structural problems include high energy prices, too much bureaucracy and a lack of skilled workers.

aeh/dpa/Reuters