A Bundesbank Executive Expresses Concern Over Proposed Constitutional Amendments for Large-Scale Borrowing.
Although “additional expenditures for defense and infrastructure are currently well-justifiable”, said Bundesbank Vice-President Fritzi Köhler-Geib to the “Handelsblatt” (Thursday edition), “the proposed possibilities for debt seem to me very far-reaching.”
Köhler-Geib emphasized the need for greater transparency in government debt. It is crucial to spend the available money efficiently. “Besides the amount, it is equally relevant that investments are made efficiently”, she said.
The economist is calling for “decisive structural reforms” from the future federal government for the economy. This is “urgent” – also to prevent companies from exploiting capacity shortages to set higher prices. “Germany needs more innovative power, a higher labor force potential and must become more attractive for business investments”, said Köhler-Geib.