Government - Heinold calls for reform of the debt brake
In contrast to Minister President Daniel Günther (CDU), Finance Minister Monika Heinold (Greens) has spoken out in favor of reforming the debt brake. "The debt brake is right in principle, but it needs to be reformed," Heinold told the German Press Agency on Monday. It must be allowed to incur debt to a limited extent for future investments. In addition to the federal government, the federal states should also be able to take on new debt each year as provided for in the fiscal pact.
"And thirdly, emergency loans must also be able to be used over the course of a year, because crises don't have a calendar year," said Heinold. She advocated adapting the regulations to the current challenges. "A debt brake must be practicable and accepted by the majority if it is to be sustainable."
The Minister President had previously 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."
Heinold also praised statements made by Federal Finance Minister Christian Lindner (FDP) in favor of a partial reform of the mechanism for limiting public debt. Lindner told the Redaktionsnetzwerk Deutschland that there are plans to revise the calculation of the so-called economic component, which allows more leeway in the event of a downturn.
"This would allow more borrowing in a downturn than before," said Heinold. "If the economy does not improve noticeably in the coming months, this adjustment would also help us in Schleswig-Holstein for the 2025 budget."
Read also:
- A clan member is punished here
- Traffic lawyer warns: Don't talk to the police!
- Will he be convicted as Jutta's murderer after 37 years?
- He also wanted to kill his cousin
- Monika Heinold, the Green Party's Finance Minister in Schleswig-Holstein, aligns with calls for reforming the debt brake, acknowledging its need for modification to accommodate limited future investments.
- Under the fiscal pact, both the federal government and the federal states should be permitted to incur new debt annually, as proposed by Finance Minister Heinold.
- Daniel Günther, the CDU's Minister President in Schleswig-Holstein, advocates for upholding the strict debt brake rules, cautioning against incurring debt for its own sake, and warning against passing financial burdens to future generations.
- Christian Lindner, the Federal Finance Minister from the FDP, has supported partial reforms to the debt brake mechanism, which would revise the calculation of the economic component, permitting more leeway during financial downturns.
- According to Heinold, this modification to the debt brake mechanism could allow for increased borrowing during economic downturns, potentially benefiting Schleswig-Holstein's 2025 budget if economic improvement is delayed.
Source: www.stern.de
