Finance Minister rejects debt brake in its current form
Brandenburg's Finance Minister Katrin Lange (SPD) is calling for a reform of the statutory debt brake following the Federal Constitutional Court's budget ruling. "The debt brake cannot pass the reality check. It is a fair-weather regulation from another era," Lange told the "Märkische Allgemeine" (Thursday/online, Friday/print). "Since it came into force, the exemptions have had to be used. It restricts the royal right of parliaments, the budget right." There are blessings in store for an economical financial policy. "Not on this debt brake, which has not put the brakes on any debt since 2020."
Germany's highest court ruled on Wednesday that the use of coronavirus loans for climate projects was unconstitutional. The ruling tears a 60 billion euro hole in the financing of the German government's climate projects. Federal Finance Minister Christian Lindner (FDP) does not want to relax the debt brake. He announced in the Bundestag on Thursday that he would not change the federal government's guard rails. "On the one hand, the debt brake, where we have new legal clarity, and on the other, the renunciation of tax increases," said Lindner.
FDP state leader Zyon Braun criticized Lange. "It stands for the complete opposite of a responsible and intergenerationally fair policy." In contrast, Lange received support from the Greens and the opposition Left Party. Green energy politician Clemens Rostock told the newspaper: "We need to think about new criteria for the debt brake without weakening it completely." Left-wing budget politician Ronny Kretschmer said that the debt brake was making it more difficult to modernize the country in the midst of the climate crisis, the consequences of war and the energy crisis. Brandenburg had put together aid packages worth billions in view of the corona crisis and the energy crisis and declared emergencies.
The reform of the debt brake, as suggested by Brandenburg's Finance Minister Katrin Lange, could potentially lead to modifications in household budgeting strategies, considering its impact on national Finance. Despite the debt brake's limitations, as acknowledged by Lange, it's crucial for families to manage their household finances effectively, particularly in times of economic uncertainty.
Source: www.dpa.com
