Schulden: Bündnis ruft Politik zur Reform der Schuldenbremse auf

The employer-affiliated Institute of the German Economy (IW), the Klimawirtschaft Foundation, and Fiscal Future have urged the federal government to use the new debt spaces not for additional investments, according to a discussion paper obtained by Handelsblatt. These organizations are calling for higher investments and a reform of the debt brake, which limits the intake of new debt for defense.

Sabine Nallinger, Chairwoman of the Klimawirtschaft Foundation, notes that for the borrowed credits to be worthwhile, it is crucial that public funds trigger private investments and new growth to pay off the interest. However, currently, the opposite is happening, which is why the government should clarify and prioritize investments in future technologies, she adds.

This call comes at a politically decisive time as the coalition works on the 2027 federal budget. Economic research institutes and the federal budget office have been harshly criticizing the federal government for months, accusing it of misusing the new debt spaces for election promises and filling budget holes. Pressure is mounting on the federal government, and soon, the report of the commission commissioned to reform the debt brake will be released.

The publication has been delayed because the commission could not agree on a proposal. Union representatives intend to finance defense expenditures quickly from regular revenues, while the Social Democrats want to slow down the exception for defense expenditures.