Bundestag debate: debt package ensures turbulence in front of elections!

Bundestag debate: debt package ensures turbulence in front of elections!

On Thursday there was a remarkable meeting of the Bundestag, in which the future of German financial policy was discussed. In view of the upcoming change of MPs, in addition to many elected ministers, members of parties that had failed due to the five percent hurdle spoke. The central debate was about a debt package that was to be decided before the latest elections. The CDU chairman Friedrich Merz emphasized that the situation had changed fundamentally since the election day and expressed concerns that a vocal parliament may take far-reaching resolutions that the future parliament could disembark. The constitutional lawyer confirmed the ability of the old Bundestag to act until the new.

The stock situation of the debt package could be critical in the long term. Above all, there is concern that the funds are not primarily used for infrastructure projects, but to finance election promises. The FDP parliamentary group leader Christian Dürr explicitly warned that funds could possibly be used for "left-wing economic policy". In addition, the proposal was submitted to separate defense spending and infrastructure to provide additional funds for the Bundeswehr.

Reform of the debt brake in focus

The reform of the debt brake is also on the agenda. SPD and Greens demand adjustments to enable investments in the climate, infrastructure and education. The DBB civil servant is an urgent need for investment of 600 billion euros in the next ten years, especially since 570,000 jobs in the public service are vacant. Economic Minister Robert Habeck (Greens) brought the idea of ​​a new Germany fund into play, which could be equipped with 100 billion euros. This is intended to serve as a lever for private investments, whereby companies are intended to receive an investment bonus of 10% that are offset against their tax debts. The SPD underlines that the Germany fund should operate under the existing framework conditions of the debt brake.

The debt brake, which has been anchored in the German Basic Law for 15 years, has the goal of not excessively burdening future generations. The discussion shows that there are two clear camps: supporters who advocate fiscal discipline and critics who consider the rule to be a hindrance to public investments. The institute of the German economy has outlined three reform variants, which could enable a total of around 30 to 35 billion euros in additional scope per year.

political dialogue and next steps

Friedrich Merz is ready to talk about the reform of the debt brake, but has questions about the overarching goals. There is an agreement among the various factions that quick conversations between the CDU, CSU, SPD, Greens and the left are necessary in order to mobilize other means for essential areas such as infrastructure, economy, education and climate protection. The ongoing discussion about the debt brake could be crucial for the future economic orientation of Germany and set the framework for upcoming investments.