Special federal assets revive debate on debt brake

The financial package agreed for the federal government has led to louder calls for a relaxation of the debt brake in Saxony. Initial reactions have welcomed the 500 billion euro special fund for investment in infrastructure at federal, state and local level. The German Trade Union Confederation (DGB) announced that this could also eliminate a significant part of the existing investment backlog in Saxony.

In the opinion of the DGB, funds for the federal states are not sufficient

"Since the introduction of the debt brake, we have warned that the existing investment backlog in the area of public and social infrastructure will continue to worsen. The special fund and the other results of the exploratory negotiations between the CDU/CSU and SPD are suitable for correcting this fundamentally wrong decision," explained DGB head Markus Schlimbach. However, the 100 billion euros earmarked for the federal states and local authorities would not be enough. For Saxony alone, a requirement of 44 billion euros has been calculated for the next ten years.

DGB demands relaxation of the debt ban in Saxony

Schlimbach therefore believes that the Free State itself has a duty. In Saxony, too, there must finally be a more concrete discussion about how the public sector can once again make credit-financed investments. "The completely absurd ban on debt in the Saxon constitution is once again proving to be a first-class stumbling block. The possibility of a state-owned investment company must be put back on the political agenda."

For the Left, the most urgent task: taxing wealth fairly

The Left also believes that an end to the ban on borrowing is necessary. However, the most urgent task is to tax wealth fairly, according to the parliamentary group. "The state must invest - otherwise we are shifting huge burdens onto future generations. It is legitimate and necessary to release the brakes on investment so that we have significantly more money available for railways and roads, daycare centers, schools, universities, bridges, energy grids and other important areas," emphasized MP Rico Gebhardt.

SPD rejoices: Now we're getting down to business

The SPD leadership rejoiced and titled its statement on the special fund as follows: "No more despondency. This is where we get down to business." "The fact that 100 billion has been earmarked for the federal states and local authorities is right, because the investment backlog is noticeable everywhere. Everything has been run down for too long," emphasized party leader Kathrin Michel. Co-chairman Henning Homann spoke of a signal for Saxony.

In the opinion of Saxony's Economics Minister Dirk Panter (SPD), it now depends on the exact structure for the federal states. "Due to the difficult budgetary situation in which most of the federal states find themselves, there must be no co-financing obligations."