Schleswig-Holstein solved this problem with an additional budget State Parliament Emergency loans declared unconstitutional. “We take the decision of the State Constitutional Court very seriously and we have chosen the quickest path to completely eliminate its consequences,” said Finance Minister Silke Schneider (Green Party). However, the loan is not repaid immediately, but only transferred to the budget. It’s still debt. Apart from the CDU and Green Party coalition factions, the SSW also agreed.
The state parliament has drawn conclusions from the April decision. Judges in Schleswig have declared the approval of the 2024 budget with the power to take out emergency loans invalid. Additionally, the judge said, there was no constitutional repayment plan. The three emergency loans worth a total of 492 million euros are based on storm surge on the Baltic Sea coast in October 2023, Russia’s war of aggression in Ukraine and the corona pandemic.
According to the Minister of Finance, this rebooking can now only be done through a new option called new structural debt. Black-Green is now planning an additional 521.5 million euros for this year Debt. With these additions, net borrowing in the 2025 budget increased by 38.5 million euros to around 675 million euros. Additionally, additional savings requirements fell from 247 million euros in July to 55 million euros. “At the end of the 2025 fiscal year, this amount will also be fully disbursed,” said Schneider.
According to the minister, the country, already heavily in debt, is burdened by increased social spending, including 30 million euros for youth welfare providers. There are also additional costs of 129.2 million euros for integration assistance and 13.3 million euros for social assistance. The coalition is also investing and strengthening the police in the field of drone defense beyond the five million euros already included in the budget with authorized commitments to be able to start purchasing additional technology.
criticism
SPD financial politician Beate Raudies recalled that the government had violated the constitution with the 2024 budget. Recovery was only possible thanks to new debt options, but the budget remained unbalanced. He doesn’t understand why the finance minister isn’t so keen to present a balanced budget six weeks before the end of the year. In addition, the estimated results of the new tax on higher revenues of around 300 million euros are not taken into account in the supplement.
In December, Parliament wants to discuss the draft Black-Green budget for the coming year. The state government plans revenues of 17.42 billion euros. However, expenditures are planned at 18.15 billion euros. Net borrowing in the draft budget is 559 million euros, there is still a need for savings of 194 million euros.
© dpa-infocom, dpa:251119-930-314886/1
