The Economic Stabilisation Fund (ESF) is expected to reduce the burden on consumers and enterprises with respect to the energy crisis. The volume: €200 billion. In an advisory report addressed to the parliamentary Budget Committee, we pointed out budgetary and constitutional risks in implementing the ESF funding.
Energy aid package: protective shield funding questionable
The ESF has an emergency borrowing authorisation of up to €200 billion that may be used in 2022 only. However, the majority of the funds are actually not needed until 2023 and 2024. By means of an unprecedented fiscal arrangement, the Federal Ministry of Finance tried to technically make full use of the borrowing authorisation in 2022 without borrowing the respective amount on the market in the same year. The Ministry hence feigned a borrowing and thus undermined the debt rule.
With regard to current events: impact of the Constitutional Court ruling on the ESFs
On 15 November 2023, the Federal Constitutional Court annulled the 2021 supplementary budget. We have already submitted our report on the ESF to the German Bundestag on 29 August 2023. Therefore, the report does not include statements on whether and to what extent the court ruling can have an impact on the ESF funding. For statements on that matter, please see our comments on the public hearing of the Budget Committee on the 2024 federal budget.
Furthermore, we pointed out several weaknesses in the design of the ESF in the course of the legislative procedure in October 2022: See here.
Downloads
Advisory report (Short info in English, long version only available in German)