Debt brake relief measures deemed as uncomfortable and painful, according to BDI head.

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.

Read also:

1. Despite advocating for strategic use of budget funds and special debt-financed funds, BDI boss Siegfried Russwurm acknowledged that the proposed debt brake relief measures could be viewed as uncomfortable and painful.
2. Speaking about the proposed budget for the next decade, the BDI Chairman expressed that while they support the idea of special funds for infrastructure investments, they are not advocating for an easing of the debt brake but rather structural reforms to boost growth.
3. In the midst of intensifying discussions for the federal budget of the upcoming year, the BDI's stance on debt brake relief measures has sparked debate, with some like FDP and their Finance Minister Christian Lindner advocating for strict adherence to the debt limit.
4. Despite the controversial nature of his suggestions for debt brake relief, BDI head Siegfried Russwurm remains adamant that structural reforms and effective use of budget funds are critical to address the 400 billion Euro shortfall in public investments, primarily in transportation and education infrastructure.

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