Brinkhaus for limited public debt in Germany

by Thorsten Koch

The leader of the Union parties in the Bundestag, Ralph Brinkhaus (CDU), has spoken out in favor of a maximum limit for new government debt. This should be confirmed before decisions are taken on the stimulus package. Brinkhaus spoke of a “cash box crash” that was necessary before the package could be initiated.

Debt recently stood at 59 percent of the German gross domestic product. It was important to determine the extent to which the next generation could be exposed to public debt, Brinkhaus said. Aid to be given to European member states should be factored in. The sum of lower tax revenues and the sum of higher social expenditures would also have to be taken into account.

Construction measures for all industries

Brinkhaus advocated stimulus measures. A systematic approach was now needed, which Parliament had to decide on, instead of naming a new idea each day.
At the beginning of June, economic stimulus measures are expected to help the economy to get going. Other politians had spoken of one-off payments to families or a purchase premium for all types of cars. Brinkhaus rejected these two options, instead encouraging targeted, future-oriented investments. “There are more people working in the healthcare sector than in the automotive industry, and there are also many jobs in the catering industry. We cannot promote one and the other not”, he said.

SPD: Do not limit state responsiveness

In the meantime, the vice chairman of the SPD parliamentary group in the Bundestag, Post, has refused to limit the debt. Germany had recently mobilized its full financial strength, and that is why the Corona crisis was mastered. State responsiveness should be unrestricted.

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