Haseloff and Kretschmer open to reforming the debt brake
The CDU Minister Presidents of Saxony-Anhalt and Saxony, Reiner Haseloff and Michael Kretschmer, are open to a reform of the debt brake. "The debt brake must remain," Haseloff told Stern magazine. "But for very important future investments in the economy, technology and science, constitutionally compliant ways must be found to realize them."
Kretschmer told the "Frankfurter Allgemeine Sonntagszeitung" that the CDU/CSU would support the federal government if it was prepared to implement real austerity measures. At the end of a joint process, there could be a pact for Germany - "and perhaps a discussion about a change to the debt brake". Such an austerity course would have to include not increasing social spending any further.
The debt brake enshrined in the Basic Law only gives the federal government limited scope for borrowing. Exceptions are permitted in the event of natural disasters and exceptional emergencies, such as the recent coronavirus pandemic and the war in Ukraine.
A reform of the debt brake is not currently on the agenda for the traffic light federal government. "It is not on the agenda at the moment," said government spokesperson Steffen Hebestreit in Berlin on Friday.
Following the Federal Constitutional Court's budget ruling, there were differing positions on the debt brake within the coalition government at federal level. Federal Finance Minister Christian Lindner (FDP) clearly rejected a relaxation, while the Greens and SPD want to discuss the future of the debt brake. The Parliamentary Secretary of the CDU/CSU parliamentary group, Thorsten Frei, spoke out against changing the debt brake.
The background to this is the Karlsruhe budget ruling on money that had been approved as a corona loan but was subsequently to be used for climate protection and the modernization of the economy. At the same time, the judges ruled that the state was not allowed to reserve emergency loans for later years. As a result, further billions of euros for future projects are at risk.
The CDU, led by Minister Presidents Haseloff and Kretschmer, advocates for finding constitutionally compliant ways to invest in the economy and technology, despite upholding the debt brake. The Federal Council and Federal Government may need to consider real austerity measures, including no further increases in social spending, if they want the support of the CDU/CSU for such reforms, potentially leading to a discussion about altering the debt brake.
Source: www.dpa.com
