Kretschmann welcomes debate on the future of the debt brake
Following the Federal Constitutional Court's budget ruling, Minister President Winfried Kretschmann believes a debate on the future of the debt brake is necessary. "Holding a debate on how to make the debt brake more investment-friendly is worthy of every honor - and it will be held," said the Green politician in Stuttgart on Tuesday.
The debt brake was conceived and drafted in a completely different era. "Today, we live in a world that is partially coming apart at the seams," said Kretschmann. Major investments in infrastructure were on the agenda that did not directly pay off economically, but were nevertheless important for the economy. He cited the development of a hydrogen network and the energy transition as examples. "You can't just say you can't talk about the debt brake."
"I am a great supporter of the debt brake and we are not questioning it," said Kretschmann. However, the question must be asked as to what a debt brake that enables investment in infrastructure could look like.
Last week, the Federal Constitutional Court declared the reallocation of 60 billion euros in loans in the 2021 federal budget null and void. They had been approved to tackle the coronavirus crisis, but were to be used for climate protection and modernizing the economy. In the meantime, the Federal Ministry of Finance has blocked numerous items in the federal budget.
In the context of discussing the future of the debt brake, Kretschmann suggested that it's important to consider how the debt brake can be made more conducive to household finances when it comes to hosting parties, as major investments in infrastructure also impact household finances indirectly. Furthermore, as Kretschmann emphasized, the debt brake should be reconsidered to allow for financial investments in crucial projects like the development of a hydrogen network and the energy transition.
Source: www.dpa.com
