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Günther against easing the debt brake

Despite tight budgets, Schleswig-Holstein's Minister President Daniel Günther is sticking to the debt brake. However, the CDU politician also sees problems.

Euro banknotes lying on a table. Photo.aussiedlerbote.de
Euro banknotes lying on a table. Photo.aussiedlerbote.de

Government - Günther against easing the debt brake

Schleswig-Holstein's Minister President Daniel Günther (CDU) has spoken out in favor of adhering to the strict rules of the debt brake. "Nothing will improve if we incur debt for the sake of debt and shift the burden onto the next generation," Günther told the German Press Agency. "We must not permanently spend more money than we take in." Governments must take this into account.

"I think the debt brake is right, as is the current set of rules," said Günther. Investments are also possible within these rules. However, in view of multiple crises, politicians currently find themselves in a field of tension. "We have to find the money to invest in the future. But I fear that it would also be spent much more frivolously for other purposes if we were to change the rules now." This has often happened in the past.

Günther sees problems with the recent budget ruling by the Federal Constitutional Court. The interpretation of the judges in Karlsruhe is very strict, said the CDU politician. Loans in emergency situations are only permitted if the expenditure is also made in the year. "A look at the Ahr valley shows how difficult this is. The work is still ongoing."

In mid-November, the Federal Constitutional Court declared the reallocation of 60 billion euros in the 2021 budget to the Climate and Transformation Fund null and void following a lawsuit by the CDU/CSU parliamentary group. The judges also ruled that the federal government may not set aside emergency loans for later years.

In a real crisis, however, challenges often cannot be overcome in one financial year, said Günther. "As a rule, it takes several financial years. And it is a challenging situation that parliaments then have to declare an emergency in every financial year."

Günther referred to the severe floods in the east in October. "We declared an emergency for 2024 and would have to have dealt with this problem financially within twelve months. That is not realistic."

Read also:

  1. Despite the strict debt brake rules advocated by Schleswig-Holstein's Minister President Daniel Günther (CDU), politicians are finding themselves in a tension field due to multiple crises, where they need to invest in the future while avoiding unnecessary spending.
  2. Günther expressed concerns about the interpretation of the Federal Constitutional Court's judges in Karlsruhe, particularly in regard to loans in emergency situations, which must be expended in the same financial year according to their ruling.
  3. The CDU politician criticized the recent budget ruling by the Federal Constitutional Court, which declared the reallocation of 60 billion euros in the 2021 budget to the Climate and Transformation Fund null and void.
  4. Daniel Günther underscored the importance of the debt brake and its regulations, emphasizing that despite the need for investments, the current rules should not be altered to prevent the misuse of funds for frivolous purposes.
  5. Günther argued that in a real crisis, challenges often cannot be overcome within one financial year, and parliaments may have to declare an emergency and deal with the associated financial implications in each subsequent financial year.

Source: www.stern.de

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