Union Warns Against Debt Spending Following Iran Crisis

Union Warns Against Debt Spending Following Iran Crisis

The CDU/CSU parliamentary group in the Bundestag has issued a strong warning against using external conflicts, such as the one in Iran, as a pretext for re-suspending the debt brake. Mathias Middelberg, the deputy chairman of the CDU/CSU parliamentary group, told the “Neue Osnabrücker Zeitung” that speculation about taking on new debt must not become an automatic response when difficulties arise. He pointed out that massive debt packages already allocated for infrastructure and the military (Bundeswehr) have already driven up interest rates across Germany.

According to the CDU politician, pursuing further loans would intensify this economic trend. Middelberg warned that rising interest rates lead to price inflation, which would subsequently put a significant strain on consumers and the broader German economy.

This stance contrasts with the position of SPD group leader Matthias Miersch, who had previously told the “noz” that, in a genuine emergency, the state must be prepared to take on additional debt to prevent an economic collapse.