World Economic Forum
Kukies: Reforming the debt brake does not solve all problems
The Bundesbank President is calling for a completely new debt brake. Germany’s problems are too great. The finance minister is a little more cautious.
According to Finance Minister Jörg Kukies, a reform of the debt brake alone will not solve Germany’s economic problems. “We have to concentrate on the growth potential,” said the SPD politician at the World Economic Forum in Davos. It is not enough to use more money for consumer purposes, better bridges, schools and infrastructure. “Our problems are not just economic, they are deeply structural,” emphasized the minister. There must therefore be parallel reforms that promote growth.
The debt brake has also given Germany a lot of financial leeway in recent years, for example during the Corona crisis, emphasized Kukies. Nevertheless, he is in favor of “very targeted reforms” of the regulation in the Basic Law.
Bundesbank boss Joachim Nagel had previously suggested a completely new debt brake in Davos. “I think we shouldn’t just make slight changes,” he had said. “I think we need to change the whole concept.”
dpa
Source: Stern
