Disagreements have emerged within the German governing coalition regarding proposals for reforming the country’s debt brake, according to sources familiar with the discussions.
Federal Finance Minister Lars Klingbeil, of the Social Democratic Party (SPD), has presented plans for a reform commission whose composition is proving contentious. Information obtained by “Der Spiegel” indicates concern within the Christian Democratic Union (CDU) and Christian Social Union (CSU) regarding the proposed structure. The commission is slated to have 15 members, with Klingbeil’s SPD and the CDU/CSU each receiving five seats, despite the SPD’s smaller parliamentary representation. The Left and the Green Party are allocated one seat each, alongside three “elder statesmen” former politicians, with two designated for the CDU/CSU and one for the SPD.
Members of the CDU/CSU within the Bundestag are worried that their seven votes may be outweighed within the commission by a potential majority likely to advocate for further loosening of the debt brake. They have also expressed reservations about the direction Klingbeil is setting for the commission’s work. There are fears that the Finance Minister intends to create exceptions to the debt brake for investments, mirroring a precedent already established for defense spending, potentially enabling significantly expanded borrowing capabilities. The disagreement highlights growing tensions surrounding fiscal policy within the German government.