Association of towns and municipalities calls for debt brake to be reformed
The German Association of Towns and Municipalities has called on the federal government and the opposition to work together to reform the debt brake. "Following the Federal Constitutional Court's decision on the climate and transformation fund, Germany is in a serious financial crisis," the Funke Mediengruppe quoted from a position paper by the Association of Towns and Municipalities on Thursday. It calls for an exception to the debt brake for investments in climate protection and infrastructure.
"The municipalities expect politicians to now find a way to permanently finance investments in climate protection, climate adaptation and infrastructure," it said. This is a task for generations. The funds cannot be raised from the current federal budget, either in the short or medium term.
An amendment to the constitution and solidarity between the government, the CDU/CSU opposition and the federal states were necessary. The association suggested leaving the debt brake in the constitution, but modifying it. In future, it should not apply to investments in climate protection, climate adaptation and infrastructure.
The committee also called for a "moratorium on all new benefit laws in this legislative period". The basic child benefit should be suspended in order to find an unbureaucratic procedure. In addition, the federal states should be allowed to temporarily suspend the legal entitlement to all-day care in elementary school if they are unable to meet the entitlement. "The agreement will be concluded quickly and implemented in the first half of 2024 to ensure the necessary planning security," the association demanded.
The Association of Municipalities, in its position paper, advocates for both the federal government and the opposition to collaboratively reform the debt brake, considering the country's financial crisis following the Federal Constitutional Court's decision. The paper suggests an exception to the debt brake for investments in climate protection and infrastructure, emphasizing the importance of permanent financing for these initiatives in cities.
Source: www.ntv.de
