Debt brake relief measures deemed as uncomfortable and painful, according to BDI head.
Here's a paraphrased version of the text:
Approximately two weeks ago, the BDI shared some numbers, suggesting a lack of 400 billion Euro in public investments, primarily for transport and education infrastructure, in the proposed budget for the next decade. To make up for this shortfall, the BDI suggested setting up special funds, financed by debt, as per their chairman's statements. This idea was backed up by Russwurm, who mentioned specifically designated and well-defined credit packages.
However, the BDI's chairman clarified that they aren't advocating for loosening the debt limit; rather, they're pushing for structural reforms to boost growth. They emphasized the need for more effective use of budget funds, such as through digitalizing administration and prioritizing spending wisely. Once these efficiency measures are in place, the remaining gap could be filled through debt financing.
Currently, discussions about the federal budget for the upcoming year are intensifying in the Federal Government. The Federal Cabinet is set to give its approval to the budget plan on July 3. The FDP and their Federal Finance Minister, Christian Lindner, are advocating strongly for sticking to the debt limit and are pushing for strict austerity measures, particularly in the social sector.
