BERLIN (dpa-AFX) – According to the head of the Chancellery, Helge Braun, the debt brake cannot be adhered to in the coming years. “In order to have a quick recovery and a reliable framework for investments, it makes sense to stabilize the social security contributions by the end of 2023 and also to forego tax increases,” wrote the CDU politician in a guest article for the “Handelsblatt” (Tuesday). Such a decision to recover the economy would place considerable burdens on the federal budget. “Specifically: The debt brake cannot be adhered to in the coming years, even with otherwise strict spending discipline.” Braun considers an amendment to the Basic Law to be useful.
In Germany, it is currently the case that the federal government is only allowed to take out new loans to a limited extent, namely a maximum of 0.35 percent of the gross domestic product. This rule was suspended last year due to the corona crisis.
Braun spoke out against “annual individual decisions” with a view to a possible deviation from the debt rule. It is completely unclear how long the pandemic could be a justifying circumstance. “That is why it makes sense to combine a recovery strategy for the economy in Germany with an amendment to the Basic Law that provides a reliable degressive corridor for new borrowing for the coming years and a clear date for the return to compliance with the debt rule.” / Cco / DP / mis
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