Leading economist Michael Hüther has voiced strong criticism of the German government’s budgetary policies, characterizing recent maneuvers as a “scandal”. In remarks to the business magazine “Capital”, Hüther, Director of the Cologne Institute for Economic Research (IW), expressed his concerns regarding the government’s approach to fiscal management.
While previously advocating for temporary suspensions of Germany’s debt brake (Schuldenbremse), Hüther now condemns what he describes as a “visible shifting of funds” and a lack of transparency. He argued that the current system, relying heavily on quotas at the federal level while eliminating supplementary funding at the state level, represents a problematic trajectory.
Hüther explicitly distanced himself from the perception that his critique validates those who opposed reform of the debt brake from the outset. He questioned the feasibility of Finance Minister Christian Lindner’s initial plans to secure billions within the core budget, asserting that the current course of action is essentially an attempt to address years of neglected investment.
The economist further attributed the current situation to a reluctance among the Christian Democratic Union (CDU) and Free Democratic Party (FDP) to openly address the challenges posed by the debt brake. He suggested a lack of preparation within the Union and criticized the Social Democratic Party’s (SPD) approach within the Finance Ministry.