“The debt brake in its current form is no longer up to date,” says an internal template for the closed meeting of the Bundestag faction, which the “Süddeutsche Zeitung” reports on. “The current rigid rules pose a risk to the prosperity of current and future generations because they do not provide enough scope for strong … Read more
In view of the tense flood situation in several federal states, the leading SPD budget politician Dennis Rohde has brought the debt brake into play again. “The full extent of the flood damage cannot yet be foreseen, but for exactly such cases we have the option of suspending the debt brake, which is in the … Read more
Countries that shy away from debt end up with no more money in their coffers. The opposite is the case: investments become tax revenue. Gave the austerity paradox its name and would be quite old by now: the old British economist John Maynard Keynes Photo: xLIFE Picture Collection/Pond5/imago Which country did better? Italy’s national debt … Read more
France and Germany look at debt very differently. It starts with the language, explained Bruno Le Maire in an Arte documentary. In it, the French finance and economics minister said that the French term for debt (“la dette”) refers solely to financial debt. In Germany, on the other hand, the term has another level, that … Read more
comment As of: December 1st, 2023 4:01 p.m The federal government is struggling with the budget for the coming year and calls for a reform or even abolition of the debt brake are becoming louder. There are good reasons to keep them. The debate on the supplementary budget was just a preliminary skirmish. Ultimately, only … Read more
Not all debts are the same – this is easy to understand in private. A loan to finance a property you use yourself makes sense – as long as the property is not overpriced and the borrower can meet the monthly interest and repayment installments. In this case, debt is a means of building wealth. … Read more
Before his government declaration in the Bundestag, Union politicians from Chancellor Olaf Scholz (SPD) demands leadership in the budget crisis. The Chancellor must explain how he wants to put the federal budgets for 2023 and 2024 on a solid footing, said Union parliamentary group vice-president Jens Spahn Rhenish Post. “Scholz is the elected chancellor, he … Read more
Federal Minister of Transport Volker Wissing (FDP) considers the discussion about reforming the debt brake to solve the current budget problems to be a “sham debate”. “There is obviously no majority to change the constitution,” he told the German Press Agency in Mainz. “This is an abstract debate, but we have a concrete problem.” Current: … Read more
DJ According to Mützenich, Weil is also pushing for the debt brake to be relaxed BERLIN (AFP)–The pressure from the SPD to ease the debt brake is increasing. After Bundestag parliamentary group leader Rolf Mützenich, Lower Saxony’s Prime Minister Stephan Weil (SPD) also questioned their continued strict application at the weekend. He justified this in … Read more
In the fight against horrendous energy prices and other consequences of Russia’s war against Ukraine, the federal government wants to borrow billions again in the next year. However, after three years of a state of emergency, the debt brake is making a comeback. This was one of the most important campaign promises made by FDP … Read more