Cabinet Agrees To 2023 Supplementary Budget Plans-Fin Min

The German Finance Ministry has stated that the Cabinet has agreed to adraft 2023 supplementary budget, with wires reporting that: Further effects of court decision on special funds still being examined....2023 supplementary budget in line with gov'ts sustainability strategy...Ukraine war effects to continue to significantly impact gov'ts 2023 revenue and spending...there was and is still risk that falling consumer spending could set off downward economic spiral...Sufficient funds still available to cover planned climate fund expenditure in 2024.

• Fin Min Christian Lindner: "With the supplementary budget for 2023, we are drawing the consequences from the ruling of the Federal Constitutional Court. We are not taking on any additional debt this year, in fact we are taking on less debt. But the distribution of borrowing over the 2022 and 2023 financial years must be changed for constitutional reasons. To this end, we are also implementing the decision to declare an emergency, which was identified last winter in view of the energy crisis, in the 2023 budget.”
• Bloomberg: "Lindner’s revised 2023 budget will now be sent to parliament for approval, with an initial debate scheduled for Friday morning. Scholz is due to address Bundestag lawmakers about the implications of the court ruling on Tuesday at 10 a.m. in Berlin."
• The federal gov't remains in a vulnerable position, with Lindner's pro-business liberal Free Democrats set to hold a non-binding vote among party members of whether to continue in coalition with the Social Democrats and Greens.