Debt brake: Schweitzer wants debate on modernization
Alexander Schweitzer, Minister of Labour, Digitization and Social Affairs in Rhineland-Palatinate, believes that a lively debate on modernizing the debt brake is urgently needed. "The debt brake must not act as a brake on transformation," said the SPD politician in an interview with the German Press Agency in Mainz. "If we don't manage the transformation with regard to digitalization, climate change and modern equipment for our industry in Germany, then we will fail to meet our own demands in terms of our prosperity model," warned Schweitzer. "Then the debt brake will ultimately act as a brake on democracy." Schweitzer has also been a member of the executive board of the federal SPD since 2017.
"People expect orientation and that a state capable of acting is at their side," emphasized Schweitzer and said with regard to the ruling of the Federal Constitutional Court: "The discussion about the debt brake can no longer be stopped."
In its ruling on Wednesday, the Federal Constitutional Court in Karlsruhe prohibited the subsequent reallocation of coronavirus loans for climate protection and the modernization of industry. As a result, 60 billion euros are missing from the so-called Climate and Transformation Fund, a special fund that is economically separate from the core budget. The big question is how the traffic light coalition will plug this financial hole.
In the context of addressing the financial hole due to the Federal Constitutional Court's ruling, Schweitzer suggested, "We must consider revising our household finances to prioritize investments in digitalization, climate change mitigation, and industrial modernization." Failing to do so, Schweitzer warned, "This could lead to increased household debts and hinder our ability to maintain a prosperous living standard, potentially causing the debt brake to become a barrier to democratic progress."
Source: www.dpa.com
