Greens and Left parties demand permanent debt limit reform
In a recent development, the debate on the reform of Germany's debt brake has gained momentum, with various political parties expressing their views on the matter.
Wiebke Esdar, deputy chair of the SPD parliamentary group, has voiced her support for the need for reform, emphasizing the importance of investing in infrastructure, daycare centers, schools, universities, and high-performance infrastructure. She believes that special funds can only be a temporary solution, and the reform of the debt brake should provide a reliable basis for permanently higher investments.
On the other hand, Michael Espendiller, spokesman on budget policy for the AfD parliamentary group, has rejected any relaxation of the debt brake. He argues that there is no revenue problem, but an expenditure problem, and suggests that the federal government should focus on reducing expenditures instead of seeking additional revenue. Espendiller also criticizes the current practice of the federal government and calls for a change, urging the government to abandon its practice of reckless spending and find the courage for a real task critique.
The Left party leader, Jan van Aken, has called for the complete abolition of the debt brake from the Basic Law, stating that it is absurd that the government is setting up a credit-financed special fund to close the gaps created by the debt brake. Van Aken also calls on the Christian Democrats to abandon their incompatibility resolution towards the Left party to enable a corresponding vote in the Bundestag.
Katharina Dröge, Green parliamentary group leader, has called for a structural reform of the debt brake, stating that it has become an investment brake and is harming the German economy. She suggests anchoring a permanent borrowing option for investments in the Basic Law. The Greens are ready to accompany the work of the commission to be set up and enable the necessary majorities for an amendment to the Basic Law for the permanent reform of the debt brake.
Vice-Chancellor Lars Klingbeil had previously emphasized the appointment of an expert commission on the debt brake, as agreed in the coalition agreement between CDU/CSU and SPD. The agreement also includes a comprehensive reform, including a 500 billion euro special fund for infrastructure and climate outside the debt brake, an exemption for defense spending, and more borrowing options for states. However, the AfD opposes such measures and criticizes government debt increases.
A two-thirds majority is required for a Basic Law amendment, which would require votes from the Greens and Left or AfD. The outcome of this debate will have significant implications for Germany's future investments in climate protection, infrastructure, and other crucial areas. The debate is expected to continue as the commission begins its work on the reform of the debt brake.
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