Germany’s opposition forces mocked the address of Chancellor Olaf Scholz to lawmakers about a budget crisis. Policymakers from the opposition camp, including the Christian Democratic Union (CDU)/Christiane Social Union (CSU) as well as the Alternative for Germany party not only roasted the leader but also insisted on his resignation.
Last week, on November 28, speaking in the Bundestag, Olaf Scholz urged his coalition government to consider the emergency scenario to unlock the budget. The budget shortfall popped up after the court had ruled that the authorities could not use reserve emergency loans.
In the speech, the Chancellor declared that Germany stands on the threshold of a new era. These statements triggered a wave of laughter among legislators, in particular the opposition Christian Democratic Union and the Alternative for Germany party. They were amused by Olaf Scholz's words about the resolution of the budget issue without any court involvement, the suspended government consultations, and the onset of a crisis in the country.
According to Friedrich Merz, the head of the Christian Democratic Union, such statements from the German leader "may indicate that he is not coping with his responsibilities." This view is shared by Alice Weidel, co-chair of the Alternative for Germany, who called for the Chancellor's resignation and re-elections.
Importantly, in 2022, the Economic Stabilization Fund (WSF) received only €30 billion from the government, with the remaining amount postponed to 2023. According to the court's ruling, this violated the fundamental principle of fund allocation which sets out that a loan may be used for only one year. Later, the Bundestag announced plans to wind down the Economic Stabilization Fund by the end of this year, instead of postponing the allocation of funds to 2024.
Officials working with the Chancellor mentioned that his system "relied on extrabudgetary funds, and now they have collapsed like a house of cards." The energy crisis that sparked off in the EU in July last year played a significant role in this matter. During this period, the first disruptions in gas supplies from Russia showed up. Later, the European Commission urged EU leaders to impose a total boycott on commodities of Russian origin. In September 2022, Germany declared its ban on Russian gas and later on, underscored its independence from Russian petroleum products. However, the top European economy could not avoid snags. Natural gas in Germany skyrocketed by a whopping 112%.
