Preparations are now complete for the establishment of a commission tasked with developing proposals for reforming Germany’s debt brake, the Federal Finance Ministry announced Friday. The commission, a key element of the current coalition agreement, is poised to begin its work shortly.
The panel will be jointly chaired by Stephan Weil, former Minister President of Lower Saxony (SPD), Eckhardt Rehberg, long-standing budgetary policy spokesperson for the CDU/CSU parliamentary group and Stefan Müller, former State Secretary in the Federal Ministry of Education.
Federal Finance Minister Lars Klingbeil emphasized the importance of the undertaking, stating the goal is to resolve years of debate surrounding the debt brake and to modernize it in a manner that ensures both sustained investment capacity and manageable public debt.
The commission’s mandate involves formulating concrete proposals for modernizing the existing debt rules. These revisions aim to enable consistent investment in strengthening the German economy, extending beyond the lifespan of the special asset fund for infrastructure and climate neutrality, while simultaneously upholding the viability of public finances.
In its deliberations, the commission will factor in the stipulations of the European Stability and Growth Pact and may also consider avenues for the Pact’s further development. It will also prioritize the operational feasibility and transparency of any reformed debt regulation.
The commission will operate independently and has the ability to incorporate external expertise. The Federal Finance Ministry will provide support in the execution of its tasks.
Beyond the three co-chairs, the commission includes a diverse group of experts: Thiess Büttner (Chairman of the independent advisory board of the Stability Council), Desiree I. Christofzik (Professor of Public Finance at the German University of Administrative Sciences Speyer), Sebastian Dullien (Scientific Director of the Institute for Macroeconomics and Business Cycle Research (IMK) at the Hans-Böckler Foundation), Clemens Fuest (President of the Ifo Institute), Werner Gatzer (former State Secretary at the Federal Ministry of Finance), Johannes Hellermann (Professor of Public Law, Financial and Tax Law at the Faculty of Law, University of Bielefeld), Hanno Kube (Professor of Public Law at Heidelberg University), Monika Schnitzer (Chairwoman of the Expert Council for Assessment of Macroeconomic Development), Philippa Sigl-Glöckner (Managing Director of the think tank Dezernat Zukunft – Institute for Macrofinances), Isabella Weber (Associate Professor of Economics at the University of Massachusetts Amherst), Ruth Weber (Professor of Public Law at the German University of Administrative Sciences Speyer) and Volker Wieland (Executive Director of the Institute for Monetary and Financial Stability (IMFS) at Goethe University Frankfurt).