The CDU/CSU parliamentary group in the Bundestag strongly warned against using geopolitical crises, such as the Iran conflict, as a pretext to suspend the government’s established fiscal rules and debt brake. Mathias Middelberg, the deputy chair of the CDU/CSU parliamentary faction, told the “Neue Osnabrücker Zeitung” (noz) that speculating about new debt should not become the automatic reflex when problems arise.
Middelberg pointed out that massive debt packages allocated for infrastructure and the armed forces (Bundeswehr) have already contributed to rising interest rates in Germany. According to the CDU politician, further borrowing would only intensify this development, leading to rising prices that would subsequently place a heavy burden on both consumers and the broader economy.
This cautious assessment contrasts with the position held by the SPD. Previously, SPD parliamentary group leader Matthias Miersch had told the noz that the state must be prepared to take on additional debt in the face of a genuine emergency to avert an economic collapse.
