Growing Pressure from the SPD to Ease Debt Brake Regulations

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 the Berlin “Tagesspiegel” on Sunday with the major challenges that currently have to be met.

“We now have to set the course for a CO2-neutral energy supply in the next decade and, for example, invest massively in a hydrogen infrastructure,” said Weil. In addition, many apartments would have to be built and the national defense upgraded.

The SPD politician made the comments before Chancellor Olaf Scholz (SPD)’s meeting with the state prime ministers, where questions of financial distribution play an important role. “I think it’s right that the debt brake prohibits loans for current expenses.” Weil said. But if the debt brake “prevents urgently needed investments, that is self-damaging.”

Weil also attacked Federal Finance Minister Christian Lindner (FDP), who insists on strict compliance with the debt brake. Although he is right in his criticism of an international subsidy race, “this race is still taking place” and it makes no sense to ignore it. One shouldn’t just look at the costs of supporting industry, for example, but must also ask: “What would a not insignificant deindustrialization cost us, financially and socially?”

Weil expressly supported the demand of Economics Minister Robert Habeck (Greens) and business associations for a reduced industrial electricity price. This is about the entire basic industry. “I can only strongly advise against putting this part of our industrial fabric at risk,” warned the Prime Minister.

However, Scholz has also expressed skepticism about an industrial electricity price. Mützenich, on the other hand, told the “Stuttgarter Zeitung” and the “Stuttgarter Nachrichten” (Saturday): If it was explicable in recent years to suspend the debt brake against the backdrop of the economic, social, health and international situation, then this is even more true now .” It would therefore be sensible to “make use of the debt brake exception rule again”.

DJG/game

(END) Dow Jones Newswires

November 05, 2023 05:14 AM ET (10:14 GMT)

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