Household - 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 the credit financing of additional investments, for example with a view to the challenges of transformation," they say in the guest article. "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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- In response to the budget chaos at the federal level, Berlin's governing mayor Kai Wegner (CDU) suggested launching a reform initiative in the Bundesrat for the debt brake, echoing the calls made by Finance Minister Daniel Bayaz (Greens) and Berlin's Finance Senator Stefan Evers (CDU) for a reform commission.
- The CDU politicians, Bayaz and Evers, advocated for a reform commission consisting of representatives from the federal and state governments and academia to further develop the debt brake, specifically proposing an investment rule as a conceivable part of the reform in their guest article published in the "Tagesspiegel".
- The proposed investment rule by Bayaz and Evers would enable the credit financing of additional investments for addressing challenges like transformation, insisting that any new exception to the debt rule should not create leeway for non-targeted expenditure.
- The two politicians argued that a debt level of 0.15% of the federal states' GDP would provide leeway for crucial policy issues, such as education, while also advocating for the usage of emergency loans beyond the year of the emergency's commencement.
- Meanwhile, Germany's "Daily Mirror" reported on the Household budget and its relationship with the debt brake, highlighting the central role of these discussions in shaping the financial landscape of the country and its regions.
Source: www.stern.de
