Political leaders are increasingly focused on reforming Germany’s “debt brake” (Schuldenbremse), a constitutional rule limiting government borrowing. Vice Chancellor Lars Klingbeil (SPD) has recently urged the center-right CDU/CSU bloc to uphold commitments made regarding a reform of this constraint, a call echoed by the Green Party and the Left Party (Die Linke).
The Green Party argues the debt brake was fundamentally flawed in its original design and has become a barrier to necessary investment. Green parliamentary group leader Katharina Dröge stated that Germany is paying the price in the form of dilapidated infrastructure, including bridges, schools and internet access. She argues the current system hinders economic growth and that special-purpose funds, currently totaling €500 billion, while offering a solution, should become a permanent feature of the constitution allowing for sustained investment. The Greens pledge to constructively engage with a forthcoming expert commission tasked with proposing reforms. Securing a constitutional amendment, requiring a two-thirds majority in parliament, would necessitate support from either the Green and Left parties or the AfD.
Die Linke is advocating for a complete abolishment of the debt brake. Party leader Jan van Aken contends that only a complete removal from the constitution would allow the federal and state governments to effectively plan and invest. He criticized the reliance on credit-financed special-purpose funds as a temporary fix for deficits created by the debt brake restrictions. Van Aken emphasized the need for the CDU/CSU to shift its position and cooperate with the Left Party to achieve legislative success, particularly to avoid coalition with the AfD.
SPD parliamentary group deputy leader Wiebke Esdar underscored that special-purpose funds provide only temporary relief and a reform is critical for ensuring intergenerational fairness-not just minimizing debt, but also leaving future generations a country with robust infrastructure and high-quality public services.
The AfD, however, strongly opposes any reform of the debt brake. AfD parliamentary group’s budget policy spokesman Michael Espendiller believes that the CDU/CSU should refrain from further softening of the rules. He argues that the debt brake is currently more important than ever and rejects any relaxation. Espendiller attributed the country’s challenges to excessive spending and called for a critical review of government spending practices, arguing that the issue lies in expenditure, not revenue.