Scholz Confirms Debt Brake In Place For 2024 Budget

Chancellor Olaf Scholz, Economy Minister Robert Habeck, and Finance Minister Christian Lindner giving statements to the press following the tripartite 'traffic light' coalition reaching an agreement on the 2024 federal budget.

• Scholz: "Gov't sticking to its goals...must make priorities in 2024 budget, also about savings...we will save about EUR17bn in 2024 core budget...Sticking with debt brake for 2024 budget...support for Ukraine will come from core budget....should Ukraine war become worse, gov't will have to respond. In that case, would look to declare emergency exception for budget."
• Habeck: "Will continue to invest in social spending, give protection promises to Ukraine...will increase revenues through CO2 income...savings to be made in transport, constructions ministry, also in solar industry...central pillars for economic transformation remain."
• Lindner: "This coalition is able to function...We are continuing fiscal consolidation...Focus on debt brake is still very important....EUR8bn for direct bilateral aid for Ukraine is foreseen in 2024...Should situation in Ukraine change, we are prepared to act....we are reducing climate damaging subsidies by EUR3bn...returning to CO2 price path of previous gov't from start of 2024"
• The tone taken be each minister is notably different. Habeck, from the environmentalist Greens attempting to talk up support for social spending and lack of cuts to climate change functions. Lindner on the other hand, from the pro-business liberal FDP, speaking of the need for fiscal consolidation and focus on the debt brake.
• While a deal has been reached, there remain clear divisions between the coalition members that could flare up and cause issues in future legislation.