Friday, December 8, 2023

What Is This German Budget Crisis All About?

 Well....back in 2021...the Bundestag was 'owned' by Chancellor Merkel and the CDU Party.  They invented a second budget.....just for Covid-matters (at the time, it made sense).

As the fall of 2021 came....national election occurred, and the SPD Party 'won' (you can argue that the CDU intentionally, with Merkel's help, arranged a loss).

The SPD Party walked into office and said this extra Covid-budget (from early 2021) wasn't needed any longer.  But rather than extinguish the budget....they said they'd use it for SPD, Green Party and FDP Party 'gifts'.  

Immediately, the CDU folks cited the constitution and said 'no'.....you can't legally change the path of the money 'borrowed'.  The new coalition then invented various ways to spend the money.

Court action ensued, and in the past two months...the German Constitutional Court said...'you guys can't go and rig up spending of Covid-money on something else'.

So there's this list of things, with some contracts signed....without a budget apparatus.  

Presently?  The FDP controls the budget process and says they won't invent new taxes to make up for the crazy matter.  The SPD and Greens?  They either have to dump all promised gifts, or run a new federal election (18 months early).  

If an election were to be held now?  Between the Greens and SPD....together?  They won't get more than 30-percent of the national vote.  

The Covid-budget deal....destroying the coalition gov't?  More or less.  And all this free-gift-chatter?  Well....it'll evaporate, without any further discussion. 

It is funny how this all was created, and how it evolved....to waste two whole years.

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