Maier in favor of suspending the federal debt brake
Thuringia's SPD leader and Interior Minister Georg Maier supports proposals to consider suspending the debt brake due to an emergency. "I think it is fundamentally wrong to make savings during crises. It only exacerbates the crisis," said Maier on Monday in Erfurt. He supports the proposal by SPD Federal Chairwoman Saskia Esken to suspend the debt brake for this year and next year due to a continuing crisis situation.
The debt brake enshrined in the German constitution stipulates that the budgets of the federal and state governments must be balanced without revenue from borrowing. The rule has been the subject of debate for several days due to a ruling by the Federal Constitutional Court, according to which loans for coronavirus aid may not be transferred to the climate fund. This would tear a hole of 60 billion euros in the federal government's financial planning.
Of course, the aim is to prevent over-indebtedness of the public budget, also with regard to the younger generation, said Maier. "But you also have to ask yourself what it means for the future of the younger generation not to be able to invest sufficiently."
Warning against massive cuts
He does not understand why "certain parties hold up the debt brake like a monstrance", said the SPD politician. Now is the time to support the energy transition and the transformation of the economy. "An investment backlog will cost us dearly in the future."
With a view to Thuringia, where the red-red-green coalition does not have its own majority, Maier said that it was up to parliament to make the right decisions in the current situation. "It's about investing money wisely." He could only warn against massive cuts in the budget.
The minority government's draft budget for 2024 has been in parliament for several weeks. It remains to be seen whether a compromise with the CDU and thus a budget resolution will be reached. The CDU is demanding that not all of the state's reserves be used to finance the budget of 13.8 billion euros.
In the context of discussing the debt brake suspension, Maier raised concerns about the impact of strict adherence to budget savings on future generations, stating, "But you also have to ask yourself what it means for the future of the younger generation not to be able to invest sufficiently." Furthermore, acknowledging the importance of supporting economic transformation, Maier voiced his dismay over those who view the debt brake as a sacred object, saying, "He does not understand why 'certain parties hold up the debt brake like a monstrance'."
Source: www.dpa.com
