The commission that the black‑red coalition set up to overhaul the debt brake is making only slow progress. An interim update was presented Wednesday evening by the three chairpersons of the commission in the coalition committee, as Handelsblatt reported on Friday citing participants. The partners said they were still “millions of miles” away from reaching an agreement.
The commission has drawn up a baseline: the exemption that shields defence spending should be removed in the medium term. The disagreement lies in when and how fast defence spending should again be subject to the debt brake. Members of the commission from the Union party want the rule to take effect starting in 2030, but SPD members reject this, warning against overly aggressive consolidation measures.
At the same time, SPD‑appointed members of the commission are demanding that future investment spending be excluded from the debt brake. Union representatives reject this proposal, arguing that excluding investments could keep debt levels high while defence spending is cut.
They also remain skeptical of an investment exemption, citing that the most recent debt‑brake reform diverted additional funds earmarked for investment. There is also disagreement about whether the reform should include a debt‑reduction path to bring the debt back to around 60 % of GDP.
According to coalition sources, the commission is expected to finish its work by the end of March. Whether it ultimately presents a joint reform proposal or merely outlines several options is still entirely pending.
