Debate on the debt brake: calls for reform

The SPD, Green and Left parties have called for a reform of the debt brake at federal and state level. "The current debt brakes are clearly outdated", said SPD parliamentary group leader Dirk Panter in the state parliament on Wednesday. In their current form, they would become a brake on investment, the future and cohesion. A cross-party commission from the federal, state and local governments could and should develop a viable proposal. The Federal Constitutional Court's ruling is now sounding the alarm bell. "The enormous change we are facing can only be shouldered with investment from the state."

The left-wing parties warned against making cuts to the federal budget at the expense of the most vulnerable. "We already experienced this in the debate about Hartz IV 20 years ago: the unemployed and poor as the nation's scapegoats," said party leader Susanne Schaper. In addition, investments in education, health, climate protection, local authorities and future industries are in question. "The investment brake must be removed from the Basic Law and the state constitution. The world is laughing at this absurd German fetish, while the major economic nations are investing to advance digitalization and restructure the energy supply." Loans are essential to finance investments that pay off later.

Greens domestic politician Valentin Lippman believes that reform and investment are necessary to maintain Germany as a business location with strength, innovative spirit and competitiveness. "The current regulation cannot answer the questions of the time and is damaging Germany - we are always ready to talk about adapting it, but not about abolishing it completely."

CDU and AfD rejected changes. "The debt brake is definitely necessary. This has also been confirmed by the constitutional courts. The state also needs clear repayment rules," explained CDU finance politician Peter Wilhelm Patt. Citizens are paying more taxes than ever before. "The state has to make ends meet with this money. If it wants more, it must tell citizens that they have to pay more taxes. But fulfilling wishes at the expense of the next generation - without asking them - is dishonest."

"Tax revenues have risen massively in recent years. Despite this, the Free State has not learned to cope with this and invest sufficiently. We therefore reject any relaxation of the debt brake at the present time," said AfD finance politician André Barth. Instead, the CDU-led state government must properly prioritize its tasks.