CDU and AfD Stand Firm on Debt Brake
In the midst of calls for debt brake reform, the CDU in Lower Saxony remains steadfast in their commitment to the regulation. As the chairman of the CDU parliamentary group, Sebastian Lechner, declared to "Welt" on Friday, adhering to the debt brake is a matter of intergenerational justice. Lechner believes that the debt brake has proven its worth during the pandemic, boasting its flexibility in times of emergency while ensuring sufficient room for future maneuver.
However, high levels of debt can contribute to inflation and cause prices to escalate for both consumers and businesses. The CDU leader cautioned against this, emphasizing the need for fiscal responsibility.
The AfD also echoes the CDU's stance, defending the debt brake firmly. AfD MP Peer Lilienthal goes so far as to assert that the debt brake, enshrined in the state's constitution or the Basic Law at the federal level, must never be weakened or diluted. He proposes tightening the rules by establishing an annual review of emergency situations to determine whether they persist.
The debate over debt brake reform has gained traction since the Federal Constitutional Court struck down a 60 billion euro reallocation in the federal budget. Even prominent figures like Lower Saxony's Minister President Stephan Weil and Berlin's governing mayor Kai Wegner (CDU) have urged for reform. The current form of the debt brake, as Wegner noted, is potentially dangerous.
Yet the CDU parliamentary group, not only in Lower Saxony but also perhaps in Berlin, maintains a strong advocacy for upholding debt brake principles. Laruent Schmidt, a CDU parliamentarian, echoes AfD MP Lilienthal's sentiments, emphasizing the importance of the debt brake for future generations.
Enrichment Insights
- Both the CDU and AfD generally argue for maintaining the debt brake due to the importance of fiscal discipline and reducing public debt.
- The CDU may show some flexibility in coalition negotiations, potentially lowering the debt brake threshold or focusing on cuts to government consumption.
- The AfD advocates for redirecting funds from social welfare policies to investment, aligning with their fiscal hawkish stance.
- There is a recognition that some adjustments to the debt brake might be necessary, with a willingness to consider modifications that balance fiscal responsibility and the need for public investment.
