Unleashing the calling for change, Finance Minister Daniel Bayaz from Baden-Württemberg (Greens) and Finance Senator Stefan Evers of Berlin (CDU) cry out for a refresh on the debt brake. They believe a reform commission, comprised of politicians, academics, and representatives from both the federal and state governments, should be formed to further develop this financial constraint.
Incorporating an investment rule into the debt brake is a suggestion that Evers and Bayaz put forth. This rule would enable credit financing for additional investments, ultimately tackling challenges within the realm of transformation. The two politicians warn against turning this proposed exception into a loophole for unfocused or unnecessary spending by misusing the term "investment."
Beyond that, Evers and Bayaz argue that the federal states should be granted more freedom in managing their debt. A debt leash of 0.15% of the GDP for the federal states could offer flexibility, especially in the domain of education. Furthermore, they envision emergency loans being utilized beyond the onset of the crisis year.
Following the budget fiasco at the federal level, criticism surrounding the debt brake has grown loud. Berlin's grooming mayor, Kai Wegner (CDU), voices his support for launching a reform initiative within the Bundesrat, reflecting the broader frustration and desire for reform.
