Discussion about debt brake reform "sham debate"?
Federal Transport Minister Volker Wissing (FDP) considers the discussion about reforming the debt brake to solve the current budget problems to be a "sham debate". "There is obviously no constitutional majority for this," he told the German Press Agency in Mainz. "This is an abstract debate, but we have a concrete problem."
He also said he could not understand those who complained that the federal government did not have a plan B in its pocket. "With such dimensions, you don't have a fully developed plan B," said Wissing. "That would involve an unrealistic amount of effort. You don't just do something like that." Plan A was considered legally secure and that alone was a "Herculean task".
The federal government had reallocated around 60 billion euros in undrawn coronavirus loans for climate protection and the modernization of industry and put them into the Climate and Transformation Fund. The Federal Constitutional Court has prohibited this, meaning that 60 billion is now missing from the fund. Voices have recently been raised that the debt brake could be modified in such a way that it considers loans for investments differently to those for consumer spending.
Following the ruling, a new prioritization of what money is spent on is needed, said Wissing. This is currently taking place and is a core task of politics.
Despite the ongoing debate about modifying the debt brake to accommodate investment loans, significant challenges arise due to the Constitutional Court's ruling on reallocated coronavirus funds. This situation calls for a reevaluation of household finances, as well as government budgeting strategies, to ensure responsible use of resources for crucial initiatives like climate protection and industrial modernization.
Source: www.dpa.com
