The need for a reform of Germany’s existing debt brake is gaining traction, with various political factions expressing views on its future. Berlin’s Governing Mayor, Kai Wegner (CDU), emphasized the necessity of adjustments to ensure both the federal government and individual states retain the ability to implement future-oriented investments and policy initiatives. He welcomed the federal government’s decision to establish a panel of experts tasked with exploring potential reforms to the debt brake.
While acknowledging the need for discussion, Christian Haase (CDU), the budget policy spokesman for the CDU/CSU parliamentary group, underscored the importance of maintaining the debt brake’s role as a stabilizer. He insisted that any reforms must preserve its function as a mechanism for financial stability and remain aligned with European regulations.
The Left party has voiced its support for the planned establishment of the expert commission, with party leader Ines Schwerdtner signaling a welcome for any process leading toward reform or potential abolition of the current rules.
Sebastian Schäfer, representing the Green party’s budget policy, stressed the need for the commission to approach the reform process constructively. He cautioned against ideological biases, emphasizing the importance of the panel identifying feasible solution pathways.
The impetus for exploring a potential revision stems from an agreement within the governing coalition between the CDU/CSU and the SPD, which stipulated the formation of an expert commission to develop proposals for a “modernization” of the debt brake. SPD leader Lars Klingbeil has recently reaffirmed this commitment to reform. The commission’s work will be closely watched as discussions continue around the future of Germany’s fiscal policy.