Disagreements have emerged within the German coalition government regarding plans to reform the country’s debt brake. According to reports from “Der Spiegel”, the proposed composition of the reform commission is a key point of contention.
The plan, spearheaded by Finance Minister Lars Klingbeil (SPD), allocates five seats to the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU) – the same number granted to the significantly smaller SPD. The Left and the Green Party are each slated to receive one seat. Additionally, three “elder statesmen” former politicians, will be included, with two designated for the Union parties and one for the SPD.
Members of the Union parliamentary group have voiced concerns that, with only seven votes, they risk being outvoted within the 15-member commission. They anticipate a potential shift towards further easing of the debt brake, driven by a majority likely to advocate for increased borrowing.
Furthermore, Union representatives have expressed reservations about the direction Klingbeil is setting for the commission’s work. Reports suggest a fear that the Finance Minister intends to create exceptions to the debt brake for investment, similar to the approach already adopted for defense spending, potentially enabling almost unlimited borrowing. This is expected to fuel further debate amongst coalition partners as the reform process moves forward.
