Investment
Bundesbank boss: Household hole not with a financial package
Bundesbank President Joachim Nagel urgently demands reforms for more growth – and at the same time warns of a certain use of the planned financial package.
Bundesbank President Joachim Nagel has warned reforms for more growth. The billion -dollar financial package for defense and infrastructure planned by the Union and the SPD should not be used to stuff household holes. It should be ensured that “new debt scope will only benefit new, additional investments,” said Bundesbank President Joachim Nagel in Berlin. In addition, it must be ensured that urgently needed reforms for more economic growth and competitiveness receive priority before particular interests.
Nagel: new debt necessary
Nagel also made it clear that the planned new debt was necessary. Exceptional times would justify extraordinary fiscal measures. Previously, the CDU, CSU and SPD had agreed in their explorations for a coalition to loosen the debt brake for higher defense spending. In addition, a special pot of 500 billion euros is to be created for the infrastructure. The Greens initially did not want to agree with the package.
The enormous special funds and the intended exceptions to the debt brake should give some of the deceptive impression that there are no financing bottlenecks, said the Bundesbank boss. However, he made it clear that more debts only help for a transition period. According to this, sustainable financing through the federal budget must take place. “Because more debts also mean increasing interest burden and fewer household scope in the future.”
In addition, Nagel proposed a number of measures for more growth in the German economy. Among other things, he advises an increase in working hours of part -time staff and promoting more labor market -oriented migration. In addition, the preferred pension access should be designed less attractive. Nagel proposes the end of the discount -free pension after 45 years of contributions.
Nagel also called for relief in company start -ups and generally less bureaucracy for companies. In addition, companies are to be relieved for tax purposes and the administration is to be simplified and accelerated.
dpa
Source: Stern
