Private funds investment plan proposed by SPD deputy for public use.
Amidst the continuous domestic financial squabble, the SPD is once again trying to tackle the debt limit issue. Achim Post, SPD's deputy party and faction vice chairman, urges the FDP not to brush off their suggestions too hastily. There's a potential investment fund that could be stocked with individual savings as well. Alas, no support from the Chancellor was gathered.
Giving up the possibility of another pause in the debt limit lightly is not advisable from Achim Post's viewpoint. In times of grave crises, it's crucial to gather extra financial means, Post informed the Redaktionsnetzwerk Deutschland (RND). "We shouldn't rule out possible solutions swiftly. This includes the prospect of pausing the debt limit again – especially considering Russia's war on Ukraine and its repercussions," Post stressed.
Post, the SPD politician, also advocated utilizing personal savings for investments. "There are hundreds of billions of euros sitting in German savings accounts – for a zero interest rate," Post highlighted. "We could present bank savers with an offer that guarantees safety and growth." Although the state can't pay an interest rate of eight to nine percent, a state-backed investment fund might realistically generate a decent return. The state would supply the initial capital – these transactions wouldn't be categorized as budget spending and wouldn't affect the debt limit.
The coalition is currently engaged in tough budget talks. Their goal is to approve the budget draft in the cabinet on July 3. Christian Lindner, the Finance Minister and FDP leader who oversees the debt limit, hinted that it could potentially be delayed. Government spokesman Steffen Hebestreit suggested a timeframe until the NATO summit, which kicks off on July 9. Federal Chancellor Olaf Scholz defended budget savings. "We must make do with the money we have. That's a fact," Scholz reiterated.
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- The SPD, led by Achim Post, proposes using private funds, including individual savings, to create an investment fund aimed at tackling public debt and investing in infrastructure, such as Debt brake pauses or other financial aid measures.
- Despite Olaf Scholz, the Federal Chancellor, not showing support for the SPD's proposal, Christian Lindner, Finance Minister and FDP leader, hints at potential budget talks delays, which could provide an opportunity for further discussions on utilizing personal savings for public investments.
- Although the SPD's plan to utilize private funds for infrastructure investments and potentially pausing the Debt brake might face skepticism from political parties such as the FDP, prominent voices like Achim Post argue that it could generate decent returns without creating additional public debt, as Christian Lindner proposed.
