The Ministers of the Prussian Assembly have begun their lame duck session. They are endeavoring to pass some last minute bills and other measures. Elections begin next month and the ministers are anxious to return home to campaign. Many are speculating that once the new Assembly is sworn in former Chancellor Conrad Hekel will be re-elected to the Chancellery. However there a few ministers that are gaining in popularity in the Assembly such as Bronislaw Vorowsky from Lotzen and Joachim von Trapp of Koenigsberg to name two potential challengers. One of the bills in the Assembly is the highly anticipated new budget for 2014.
Chancellor Jaap von Huack's government has accomplished much this year but his administration has seen a decline in military spending due to the automatic sequester cuts this past year. Rumors have it that the PDF is not happy with him over it. Also the unemployment rate has raised 2.4% in the last two years.
Work began earlier this month between the Chancellery and the National Assembly on a ground breaking new budget deal for 2014. One that will reign in the sequester cuts that the Council of Prussia sets on government finance. In the last year the Chancellor using his line item veto and, executive powers to close down many dysfunctional governmental programs, cut 1.1 billion marks from the governments budget. However it wasn't enough to avoid sequestration so the Chancellor and leading ministers from the Assembly sat down together to hash out a new budget.
The 2014 budget contains no new taxes, although the sale of government bonds will continue but at a much smaller interest rate. Many programs were cut, and some that were on the chopping block were saved by last minute negotiations. All in all we believe to see around 3 billion marks cut from next years budget. Undoubtedly this will free up more funds for the burgeoning military industrial complex in Prussia. However to arrive there the government must travel a bumpy road. The debt ceiling has been increased by 4.5 billion marks that is set to automatically be lowered back down 6 months into the new year. Also the current government bonds with generous interest rates are coming due and must all be paid by the end of next month. 4.5 billion marks are due at the end of December with another 4.53 billion marks by the end of January.
Now with all the talk of budget cuts new spending has been appropriated 75 million marks has been earmarked for sewers, roadways, and other infrastructure improvements. As well as another 110 million marks on improving and expanding the energy and wifi grids, the national air and sea ports as well as expanding the capacity of Prussia's 3 nuclear power plants to meet further demand.
Chancellor von Huack's re-election to the Assembly and hopes of regaining the Chancellery in 2 years hinge on pulling off this landmark budget.
|The National Assembly of Prussia.|