Wegner firmly expects the debt brake to be reformed

Berlin’s governing mayor Kai Wegner still believes that a reform of the debt brake is necessary, but that a quick decision on this is unrealistic. “I honestly don’t think there will be a lasting reform of the debt brake before the federal election – there aren’t that many weeks of meetings left,” the CDU politician told the German Press Agency. “But I believe that there is still a need to reform the debt brake.”

“I am also confident that we will get such a reform, but I do not see that this federal government is still in a position to initiate something like this together with parliament,” said the Berlin head of government and CDU state chairman. “That’s why I believe it won’t happen until after the federal election.”

There is not enough money for many investments

Overall, it is becoming increasingly difficult to set up a budget. “This applies to almost all federal states. And the same problem exists in the federal government,” emphasized Wegner. “Of course you can correct one or two things on the expenditure side. That will also be necessary, but we still need investments in the country’s defense capability, in climate protection measures, in digitalization, in infrastructure.”

No Federal Chancellor could make these investments from the federal budget. “This will mean that a reform of the debt brake is absolutely necessary. And I’m optimistic that we’ll get there,” said the CDU politician.

“I want a reform of the debt brake because we need funds for future investments that have not taken place in decades. But I won’t be able to do that from a normal federal budget or a state budget.”

Debt brake is controversial

The debt brake, which was enshrined in the Basic Law in 2009, largely prohibits the federal and state governments from financing their budgets with the help of new loans. While there is an absolute ban on borrowing for the states, the federal government is permitted to borrow up to a maximum of 0.35 percent of gross domestic product.

Wegner has already spoken out several times in favor of easing the debt brake, similar to other CDU heads of government. The Union’s candidate for chancellor and CDU leader Friedrich Merz had clearly positioned himself in favor of the debt brake in the past, but in mid-November he no longer ruled out a reform.

The debt brake is a technical issue. Of course this could be reformed. The question is why. He appeared open to reform if it served investments, progress or the livelihoods of the young generation.