CDU Official Downplays Need for Significant Changes to Germany’s Debt Brake
A senior official within the Christian Democratic Union (CDU), Mathias Middelberg, has indicated that substantial alterations to Germany’s entrenched debt brake are not currently deemed necessary. Speaking in the “Berlin Playbook” podcast by Politico, Middelberg cautioned against relying on debt as a long-term solution, emphasizing the importance of resisting the temptation to accumulate further liabilities.
An expert commission tasked with evaluating potential reforms to the debt brake is scheduled to commence its work later this week. According to Middelberg’s assessment, based on his current understanding, further changes to the rule are not required. He acknowledged, however, that further discussions with experts could lead to alternative conclusions.
Middelberg suggested that amendments could potentially be implemented without requiring a revision to the German constitution. He pointed to previous considerations proposed by the Independent Expert Council on Fiscal Policy, dating back approximately eighteen months, which focused on the cyclical component of the debt brake. Such adjustments, he stated, could be realized without a constitutional amendment.