“In light of the ruling, in recent weeks we have redefined budget priorities within the federal government”, Scholz’s words, reiterating his executive’s commitment to respecting the objectives in terms of climate neutrality and social spending, without forgetting support for Ukraine. But the cut will have repercussions, there’s no point in hiding it: “One thing is clear: to achieve these objectives we must be content with much less money. Giving priority therefore means clarifying together what we can and cannot afford. It’s also about cuts and savings.”
Going into detail about the cuts, the government has removed 12 billion euros of spending in 2024 from the aforementioned “climate and transformation fund”, for a total of 45 billion in the years up to 2027. But Scholz reiterated that the budget available remains high, for a total of 160 billion euros between now and 2027. But that’s not all. The government has in fact mowed down 5.5 billion euros of support planned to help consumers in difficulty increases in energy. Electricity prices will increase by an average of 3 cents per kilowatt hour. And again, an increase in carbon prices on heating and transport fuels and a new tax on plastic is expected.