World Economic Forum
Bundesbank boss: Need a completely new debt brake
Will the next federal government reform the debt brake? Bundesbank President Nagel believes an all-round strike is necessary.
According to Bundesbank chief Joachim Nagel, Germany needs a completely new debt brake. “I think we shouldn’t just make slight changes,” Nagel said on the sidelines of the World Economic Forum in Davos. “I think we need to change the whole concept.” In view of “tectonic changes” in the world, conventional measures are no longer enough.
“We need a lot of investment in Germany, we have our structural problems. We have to overcome that,” emphasized Nagel at a reception organized by the city of Frankfurt in Davos. To do this you have to think outside the box. He expects the new government to act and not just analyze.
Nagel also told “Spiegel” in Davos that Germany definitely has leeway given its relatively low debt ratio. “We shouldn’t close our eyes to the fact that we need more money for the tasks of the future.”
dpa
Source: Stern
