The commission established by the red‑black coalition to overhaul the debt brake has made very slow progress to date.
During a Wednesday evening meeting of the coalition committee, the three chairs of the commission relayed an interim update-information later reported in the Handelsblatt. The experts involved have not yet reached an agreement; they are said to be “still miles apart”.
Although the commission has sketched a basic framework, the key question remains: when and how quickly defense spending should once again be bound by the debt brake. Union members propose that the restriction should take effect in 2030, a proposal that the SPD rejects, warning that too harsh consolidation would be detrimental.
SPD members sent to the commission, on the other hand, demand that future investment spending be excluded from the debt brake. Union representatives oppose this, arguing that it could keep public debt high while defense spending is cut. They also view a special allowance for investment with suspicion, citing the recent debt‑brake reform as having diverted additional investment funds for other purposes.
There is also no consensus on whether a reform should include a path to reduce the national debt back toward 60 % of GDP.
The commission is expected to complete its work by the end of March, but it is unclear whether it will produce a unified reform proposal or simply present multiple options.