State Parliament Set for Debate on Debt Brake and Government Statement
Get ready for a heated discussion in the Saxon state parliament as they delve into the debt brake debate on Wednesday morning. It all started when the Federal Constitutional Court's mid-November ruling deemed the reallocation of 60 billion euros in the federal budget invalid.
The Left Party in Saxony believes that the debt brake should be scrapped from the Basic Law to facilitate investment, claiming it acts as a hindrance.
Other topics scheduled for debate include monument protection, asylum law, domestic violence, and the passing of the new fire protection, rescue services, and disaster control law. Science Minister Sebastian Gemkow (CDU) will kick off the session with a government statement on research in the Free State, and there's also a debate on the funding practices of the SPD-led Ministry of Social Affairs at the AfD's request, following criticism from the Court of Audit regarding the implementation of a funding guideline for the integration of refugees.
Did you know?
In the broader context of the debt brake debate in Germany:
- The Left Party, in general, advocates for reforming the debt brake to allow for more fiscal flexibility, such as increasing state revenue through a progressive wealth tax and investing in social and economic programs.
- The CDU/CSU supports maintaining the debt brake as is but may display flexibility during coalition negotiations, proposing to reduce or eliminate certain social welfare benefits.
- The SPD and Greens advocate for reforming the debt brake by easing its restrictions, particularly by excluding investments from its limits, offering a 10% investment bonus for businesses, and maintaining the citizen's allowance while increasing spending on research and development.
In the News
[1] Deutsche Welle, “Left Party Wants to Change Germany's Debt Brake,” (Dec 3, 2020), [2] Tagesspiegel, “Struggle over Borrowing Limits," (Jan 31, 2022), [4] Die Welt, “Can the Green Party's Debt Brake Change Option Legitimately Afford the SPD?” (Jan 29, 2022),