Climate protection is currently very popular in the government. Politicians make numerous proposals every day to make their mark as the supreme climate protectors of the republic. Only: Cost should the greening of the Republic as possible.
Economics Minister Peter Altmaier (CDU) has now devised a magic trick, with which he claims to reconcile both.
He advocates a so-called climate foundation, which issues bonds on behalf of the federal government - "with a guaranteed interest rate of two percent over ten years," as Altmaier emphasizes. Anyone who borrows money from the state would at the same time do something good for the climate and, in view of the low interest rates, make a pretty decent return.
With this money, the foundation will then finance climate protection measures - without interest. Because the foundation spends more money than it takes, the state would have to spend up to two billion euros a year to keep it going.
The federal government gets the money cheaper
The advantage, however, would be obvious: The financing of climate protection - Altmaier speaks of a total volume of up to 50 billion euros - would be outsourced in part to a secondary budget. In the federal budget, only the compensation payments to the foundation would appear. The debt brake enshrined in the Basic Law, which sets narrow limits on government borrowing, would not be affected by this.
The rules of debt making
debt ceiling
"The budgets of federal and state governments are in principle to be compensated without income from loans", says Article 109 of the Basic Law. In the future, the federal states will no longer be allowed to make indebtedness independent of the economic cycle, while the federal government will limit it to 0.35 percent of the gross domestic product.
Valid since
For the federal government since 2016, for the states from 2020 onwards.
liability
The debt brake has constitutional status. In economic crises or emergencies such as a natural disaster, the debt may be higher. But there must be a binding plan for the repayment of the loans.
Debt scope for Germany (measured by GDP 2018)
For the federal government about 12 billion euros.
implementation
So far, the federal government has kept the debt brake.
Maastricht criteria
The convergence criteria of the Maastricht Treaty must be met by countries wishing to adopt the euro. According to this, the new debt (deficit) may amount to a maximum of three percent and the total debt to a maximum of 60 percent of the gross domestic product. Thanks to the Stability and Growth Pact (SGP), these guidelines must be adhered to even after joining the euro.
Valid since
1993 (Maastricht Treaty) and 1999 (SWP)
liability
Although the Maastricht criteria are enshrined in EU law, they have often been violated. The EU Commission has therefore launched numerous so-called deficit procedures, but without financial consequences.
Debt scope for Germany (measured by GDP 2018)
Nearly 102 billion new borrowing and a good 2 trillion total debt
implementation
Germany violated early against both rules. In recent years, however, Germany has always complied with the deficit burden. The total debt falls in 2019 for the first time in 17 years again below 60 percent.
fiscal Pact
The Fiscal Compact was adopted as a tightening of the Stability and Growth Pact, which was unable to prevent the European debt crisis. Instead of only meeting the three percent limit of the Maastricht criteria, the signatories of the fiscal compact should aim for balanced budgets in the medium term. The indebtedness of the general government, which is independent of the economic situation, may amount to a maximum of 0.5 percent of the gross domestic product. If the total debt level is well below 60 percent, this limit increases to 1.0 percent.
Valid since
2013
liability
The signatory states must anchor their goals in the constitution, as Germany has done with the debt brake. The Fiscal Compact provides for the first time the possibility of financial sanctions for non-compliance. So far, this possibility has not been used.
Debt scope for Germany (measured by GDP 2018)
Nearly 17 billion, as long as the total debt is over 60 percent.
implementation
So far Germany has complied with the debt rules of the Fiscal Compact.
Black zero
If government revenue and expenditure are the same, the bottom line is the proverbial black zero. New debts are not necessary in this case. We also speak of a balanced budget.
Valid since
-
liability
The black zero is not a legal requirement. As a common goal of the Union and the SPD, however, it finds itself in the current coalition agreement.
Debt scope for Germany (measured by GDP 2018)
none
implementation
For the first time in 45 years, the black zero was reached in the federal government in 2014 and has been held ever since.
"The best climate protection does not help if it endangers Germany's economic strength," says Altmaier. Countries such as China or India would "follow our example only if they see that a country as prosperous as Germany is capable of effective climate protection without destroying its economic base."
Altmaier's Climate Foundation, however, has a catch: it may be unnecessarily expensive. Because given the current low interest rates, the federal government can currently borrow money for free - and usually gets even more on top of it, if he sells bonds to investors.
A 2% interest-bearing endowment loan would be much more expensive. It simply has the function of not affecting the debt brake. But this could violate the requirement of economy in budgetary law.
Altmaier has not explained how he wants to avoid this problem. But it would probably take a second magic trick for his first one to work.
