SPD parliamentary group leaders call for reform of the debt brake
As a consequence of the Federal Constitutional Court's budget ruling, the SPD parliamentary group leaders at federal and state level are calling for a reform of the debt brake. In its current form, it is not suitable for the challenges of the future, according to a position paper adopted by the SPD parliamentary group leaders at a conference in Duisburg on Tuesday.
"There is no way around a fundamental reform of this brake on the future," it said. In the interests of Germany as a business location and the prosperity of future generations, the CDU/CSU and FDP should no longer refuse to engage in the urgently needed debate. In recent days, there have already been calls from the federal SPD to suspend the debt brake in 2023 and 2024.
In order to enable investment, the SPD parliamentary group leaders are also proposing that "very high incomes and inheritances of multi-millionaires and billionaires" be more heavily involved in financing the common good. A significant proportion of the additional revenue generated in this way should be invested in the German Education Pact. This would also tackle "the growing inequalities in income, wealth and opportunities". According to the SPD parliamentary group leaders, the mobilization of state and private capital should also be used to invest in a climate-neutral and digital Germany.
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.
The reform of the debt brake, as proposed by the SPD parliamentary group leaders, could potentially impact the Finances of households, as changes to budgeting rules might affect public expenditures and taxes.
Amidst the discussions on debt brake reform, some SPD members have suggested temporarily suspending it for specific years, such as 2023 and 2024, to facilitate investments in areas like education and climate protection, which aligns with their vision for a more equitable society and a climate-neutral Germany.
Source: www.dpa.com
