In the face of considerations to reform the debt brake with the old Bundestag’s majority, local governments are urging for haste. “Given the extremely precarious financial situation of the municipalities, the necessary steps must be taken as quickly as possible to better financially equip the cities and municipalities” said André Berghegger, chief executive of the German Association of Cities and Municipalities (DStGB), to the “New Osnabrück Times” (Wednesday edition).
According to Berghegger, three steps are needed: first, cuts in the federal budget. “Second, the debt brake must be modified in a way that, in addition to a special fund for security and defense, an infrastructure fund is established, from which investments will be financed in the coming years, primarily in the cities and municipalities” the DStGB chief said. Finally, the debt brake needs to be adapted in consideration of the states. “They should be allowed, just like the federal government, to take on 0.35 percent of the gross domestic product of their respective state as debt” he said.
The new federal government must “swiftly agree on central questions for the coming legislative period” Berghegger emphasized. The two potential partners must move towards each other, including in the question of an indispensable financial plan. “It is clear that no time can be lost and the politically responsible in the federal government are called upon to take the necessary steps as quickly as possible” he said.
CDU leader Friedrich Merz had expressed considerations on Monday that a reform of the debt brake could still be adopted with the old Bundestag’s majority. The background is a blocking minority of AfD and Left Party in the newly elected 21st Bundestag, which must convene for its constitutive meeting by the end of March.