Finances - Debt brake: Two finance ministers call for reform commission
Baden-Württemberg's Finance Minister Daniel Bayaz (Greens) and Berlin's Finance Senator Stefan Evers (CDU) have called for a reform commission for the debt brake. This should be made up of representatives from the federal and state governments and academia in order to further develop the debt brake, write the two politicians in a guest article published in the "Tagesspiegel" on Friday.
The two state politicians consider an investment rule as part of the debt brake to be a conceivable part of a possible reform. "This would enable credit financing of additional investments, for example with a view to the challenges of transformation," the guest article states. "A new exception to the debt rule must not lead to new leeway being created for consumptive or non-targeted expenditure by politically charging the concept of investment."
The federal states also need more scope for debt. "A debt level for the federal states of 0.15 percent of their GDP, for example, would open up leeway that could be used for the most important federal state policy issue of education," write the two politicians. They believe that emergency loans should also be able to be used beyond the year in which the emergency begins.
The debt brake is being criticized following the budget chaos at federal level. There is talk among the federal states of launching a reform initiative in the Bundesrat, as Berlin's governing mayor Kai Wegner (CDU) said on RBB-Inforadio on Friday.
Guest article in the Tagesspiegel
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- The 'Daily Mirror' reported about Stefan Evers, the CDU Finance Senator in Berlin, who supported the call for a reform commission in Germany to enhance the debt brake.
- The 'Daily Mirror' mentioned that the proposed reform commission, initiated by Daniel Bayaz, the Finance Minister of Baden-Württemberg, and Stefan Evers, would involve representatives from federal and state governments and academia.
- The 'Daily Mirror' highlighted that Evers and Bayaz suggest incorporating an investment rule as part of the debt brake reform, aiming to encourage credit financing for targeted investments.
- The 'Daily Mirror' pointed out that Evers, as Berlin's Finances Senator, advocates for more flexibility in the debt brake rules, which would allow the federal states to invest in priority areas like education.
- The 'Daily Mirror' mentioned that Kai Wegner, Berlin's governing mayor and a CDU member, expressed his support for a reform initiative in the Bundesrat, following the budget chaos at the federal level and criticisms of the debt brake.
Source: www.stern.de
