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Wednesday 30 September 2020
It is a budget in times of pandemic: the Federal Government is assuming a high level of indebtedness in the fight against the economic effects of the Crown crisis. Chancellor Merkel defends the procedure in an emotional speech in the Bundestag. The leader of the AfD parliamentary group, Weidel, is very critical.
With a deeply emotional appeal, Chancellor Angela Merkel called on the population to persevere in the Corona crisis. “As citizens of this society, we should all pay more attention to each other,” asked the chancellor in the Bundestag. You are currently experiencing that people’s caution is decreasing. “We are currently risking everything that we have achieved in recent months,” Merkel warned.
The growing number of infections is a sign that the pandemic is far from over. “I am sure: life as we knew it will return. Families will celebrate again, clubs, theaters and football stadiums will be full again. What joy it will be,” Merkel stressed. “But now we have to show that we can continue to act with patience and good sense and thus save lives.” Now it depends on each individual: “I ask you.”
Merkel spoke in the general debate in the Bundestag on the budget for 2021, but the chancellor stressed that she would not be able to give a routine speech in this situation. They all yearned for closeness, touch, and togetherness again. “I myself feel that. I don’t feel different from others.” But it is clear: “We still need distance as an expression of care.”
Talk, explain, mediate
Merkel was seriously concerned about the recent significant increase in the crown. Adhering to the rules now protects not only the elderly, but the open and free society as a whole, she stressed. Germany could grow as a community through this historic challenge. Merkel called on people to talk to each other, explain and mediate.
All rules and measures are “little or nothing” if people don’t follow them. Everyone wanted to avoid another national shutdown, “and we can do it too.” Now, however, everyone would have to be on the alert again: Fall and winter would be a long way off. “We are not yet at the end of the pandemic,” Merkel warned.
Merkel also referred to the stricter requirements decided by the federal and state governments, such as a fine of at least 50 euros if guests give false information on restaurant lists. The pandemic is an “unprecedented test,” he said. Germany weathered the crisis relatively well, also thanks to citizens’ extraordinary sense of responsibility. The head of government called the corona warning app a success. It currently referred to 18 million downloads. This is unique in Europe, although, of course, there are still “initial problems”.
New debt currently “the right thing to do”
In view of the high level of new debt resulting from the Corona crisis, the CDU politician called for a swift return to debt brake requirements. “We need to get back to normal and constitutional financial management as soon as possible.” In the current situation, the high level of indebtedness is “the right thing to do,” he said.
It is about investing in an “innovative Germany” during the crisis and “strengthening social cohesion in the country,” the Chancellor said. Currently, the federal budget is focused on dealing with the pandemic. “We were able to react quickly and powerfully in an exceptional situation, precisely because we had homes with no new loans for the last six years,” he said. And despite everything, Germany still has the lowest debt ratio of the seven major industrialized countries.
Federal Finance Minister Olaf Scholz’s draft budget for 2021 foresees 96.2 billion euros in new debt. For the current year, Scholz had already secured the opportunity to obtain 218.5 billion euros in new loans with two complementary budgets. To this end, the debt brake established in the constitution, which sets limits on new government loans, was suspended.
Weidel: “Stop waking up the panic”
Before Merkel’s speech, the chairwoman of the AfD parliamentary group, Alice Weidel, accused the federal government of failure across the board. “With the mistakes of this government now an entire library could be filled,” Weidel said in the general debate. “Her excessive measures are making the Crown crisis the worst recession in German history.” She demanded, “Stop panicking.”
FDP leader Christian Lindner, however, demanded more concrete action from the federal government. “We do not use estimates of dramatically increasing numbers.” He noted that there is no testing strategy yet. Federal Minister of Health Jens Spahn wants to present this in mid-October.
With his criticism, Lindner referred to the chancellor, who recently spoke of a possible increase in the daily number of infections to a good 19,000 by the end of the year. The party and parliamentary group leader also certified Merkel that she had found “suitable words” in the crisis in her emotional speech.
Faced with the high level of new debt due to the crisis, Lindner called for a return to budget discipline and compliance with the debt brake. Taking on new debt has become a “state philosophy” in the grand coalition. Lindner warned of the effects on other European countries: “If we don’t get back to budget soundness, it will send a signal to all of Europe.”
