Germany plans to slash social benefits and rein in government debt but increase the amount spent on the military in 2024, according to a federal budget approved Wednesday by the government of Chancellor Olaf Scholz.
The proposed package foresees spending 445.7 billion euros ($485 billion) next year, down about 6 percent from this year, while taking on just €16.6 billion in fresh debt, a considerable cut of more than 50 percent. Next year’s budget will be the first to return to the cap on borrowing imposed by the country’s constitution since it was suspended at the outset of the coronavirus pandemic.
Staying within that limit meant slashing spending over the next two years, for all sectors except the military. Funds earmarked for defense would help Germany reach its obligation as a NATO member to spend at least 2 percent of gross domestic product on its military next year.
Christian Lindner, Germany’s finance minister, presented the budget as a return to the fiscal austerity for which his country is known, but critics charged that the insistence on steep cuts outside the military would limit Germany’s ability to remain a globally competitive industrial power.
ImageChancellor Olaf Scholz of Germany speaks at Parliament on Wednesday. The government’s latest budget agreement was delayed by bitter fighting between coalition partners.
**Why It Matters: Germany has long neglected military spending.**
Despite intense pressure from the United States, Germany last spent 2 percent of its G.D.P. on defense in 1991, a year after the reunification of the former East and West German nations, according to statistics from the World Bank.
But some argued that by refusing to significantly raise the military budget, which increased €1.7 billion, to €51.8 billion, opting instead to pad it with €19.2 billion from a special fund announced after Russia invaded Ukraine, the government is only providing a temporary boost.
At the same time, the severity of the cuts to social services drew sharp criticism from economists, unionists and welfare providers. The budget included cuts to a plan to help alleviate child poverty and a large reduction to the allowed annual income for new parents to qualify for government-paid parental leave.
they should ask spain what happens when you cut spending during a recession
Seems quite unwise. Hopefully this meets too much opposition in the parliament to go through as-is.
Fuck all military. Full stop
Braindead German economics returning home to roost. In a few years maybe they’ll finally understand a bit of the pain they’ve inflicted on southern Europe since the recession.
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Article:
Germany plans to slash social benefits and rein in government debt but increase the amount spent on the military in 2024, according to a federal budget approved Wednesday by the government of Chancellor Olaf Scholz.
The proposed package foresees spending 445.7 billion euros ($485 billion) next year, down about 6 percent from this year, while taking on just €16.6 billion in fresh debt, a considerable cut of more than 50 percent. Next year’s budget will be the first to return to the cap on borrowing imposed by the country’s constitution since it was suspended at the outset of the coronavirus pandemic.
Staying within that limit meant slashing spending over the next two years, for all sectors except the military. Funds earmarked for defense would help Germany reach its obligation as a NATO member to spend at least 2 percent of gross domestic product on its military next year.
Christian Lindner, Germany’s finance minister, presented the budget as a return to the fiscal austerity for which his country is known, but critics charged that the insistence on steep cuts outside the military would limit Germany’s ability to remain a globally competitive industrial power.
ImageChancellor Olaf Scholz of Germany speaks at Parliament on Wednesday. The government’s latest budget agreement was delayed by bitter fighting between coalition partners.
**Why It Matters: Germany has long neglected military spending.**
Despite intense pressure from the United States, Germany last spent 2 percent of its G.D.P. on defense in 1991, a year after the reunification of the former East and West German nations, according to statistics from the World Bank.
But some argued that by refusing to significantly raise the military budget, which increased €1.7 billion, to €51.8 billion, opting instead to pad it with €19.2 billion from a special fund announced after Russia invaded Ukraine, the government is only providing a temporary boost.
At the same time, the severity of the cuts to social services drew sharp criticism from economists, unionists and welfare providers. The budget included cuts to a plan to help alleviate child poverty and a large reduction to the allowed annual income for new parents to qualify for government-paid parental leave.
they should ask spain what happens when you cut spending during a recession
Seems quite unwise. Hopefully this meets too much opposition in the parliament to go through as-is.
Fuck all military. Full stop
Braindead German economics returning home to roost. In a few years maybe they’ll finally understand a bit of the pain they’ve inflicted on southern Europe since the recession.
Bruh