Debt: Alliance calls on politicians to reform the debt brake
The IW accuses the federal government, together with the Stiftung Klimawirtschaft and Fiscal Future, of misusing the debt leeway. The alliance calls for a limit on defence spending.
The Institute of German Economics (IW), Stiftung Klimawirtschaft and Fiscal Future have criticised the German government for not using new debt flexibilities for additional investments. They claim that the increase in government debt has not been matched by significant growth in investments and growth. The organisations are calling for higher investments and a reform of the debt brake, which limits new debt for defence.
They have made seven proposals to strengthen investments, including prioritising investments, limiting defence spending and increasing private sector involvement.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
