Federal government does not believe the time has yet come to suspend the debt brake
The German government believes that the time has not yet come to discuss softening the debt brake due to the flooding in some federal states. Government spokesman Steffen Hebestreit made it clear on Wednesday that the crisis was still ongoing and that the extent of the damage could not yet be predicted.
Only after the acute phase would the federal, state and local governments be able to discuss the extent of the damage and how to deal with it. "If such a high amount of damage is then incurred, which we are not assuming at the moment, then the federal government can also take action," said Hebestreit, referring to the German Basic Law. This stipulates that the debt brake can be suspended in the event of natural disasters.
SPD deputy parliamentary group leader Dirke Wiese argued in favor of suspending the debt brake if the federal government had to step in financially to deal with the consequences of the floods. "If financial aid from the federal government is necessary, then I think it makes sense to suspend the debt brake," Wiese told the Funke media group. "Because these are precisely the emergencies in which the constitution allows the debt brake to be suspended." Union parliamentary group deputy Mathias Middelberg immediately rejected this and spoke of sham debates. The CDU politician told the Rheinische Post newspaper that the federal government could also help financially within the framework of the regular funds available.
In its budget plans for 2024, the government has so far wanted to stick to the debt brake. However, it is still being examined whether it will be suspended again to continue financing the Ahr Valley aid of 2.7 billion euros after the 2021 floods. According to Hebestreit, this review is still ongoing.
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Despite the ongoing flood situation in certain federal states, the Federal Government maintains that the current circumstances do not warrant suspending the debt brake. Even if the damage from the floods is significant and requires financial assistance from the federal government, the debt brake could potentially be suspended under the German Basic Law. However, Union parliamentary group deputy Mathias Middelberg suggests that financial aid can still be provided within existing budgets, implying that a suspension of the debt brake might not be necessary.
Source: www.ntv.de
