A debate is emerging within the German government regarding proposed reforms to the country’s debt brake (Schuldenbremse). Thorsten Frei, Minister in the Chancellery and a member of the Christian Democratic Union (CDU), has expressed reservations about the legally enshrined alterations initially agreed upon by the current coalition government of CDU and the Social Democratic Party (SPD).
Frei, in comments provided to the Redaktionsnetzwerk Deutschland, emphasized that the government’s objective should not be to enable the state to accrue debt permanently. While acknowledging the possibility of modifications to the debt brake, he stressed the importance of adhering to principles of fiscal responsibility.
A significant hurdle to potential reforms lies in the requirement for a two-thirds majority in the Bundestag, necessitating support from opposition parties. Frei highlighted that the coalition partners – CDU and SPD – do not currently possess this sufficient majority, requiring engagement with the Green Party and the Left Party (Die Linke).
He cautioned that the coalition needs to reach a unified perspective before considering discussions with Die Linke, noting that such prospects are “far from settled”. Divergent views on the debt brake have been evident between the CDU and SPD, further complicating the matter.
Frei also referenced a resolution passed by the CDU that prohibits substantive cooperation with Die Linke, reaffirming the party’s commitment to this stance. This limitation on cross-party dialogue poses a substantial challenge to achieving the necessary consensus for the envisioned reforms.
