The coalition is starting another dispute in climate policy. For new annoyance provides the suggestion of Minister of Economics Peter Altmaier (CDU) and CSU country group leader Alexander Dobrindt (CSU) to launch a two-percent interest-climatic bond. With the instrument, the two want to mobilize 50 billion euros, which should be sufficient for a largely state-owned foundation without interest to companies and households, so that they can make climate-friendly investments.
At the conference of the executive committee of the parliamentary group of CDU and CSU the suggestion met in the past week after SPIEGEL information on a positive echo. Chancellor Angela Merkel, in particular, is said to have expressed herself very well, according to participants. The proponents see the bond as a way to activate private capital for climate protection. Especially small savers want to offer them a comparatively lucrative investment opportunity in the current low interest rate phase.
The vice-chancellor is against it
Federal Finance Minister Olaf Scholz (SPD) rejects such considerations against. At a joint meeting of budgetary politicians of the Union and SPD Group, he said after SPIEGEL information last week against any type of climate bond from. Such an instrument would be out of the question for him, he told the round as meeting participants report. The interest on such a bond would be a gift for investors from the federal budget. After all, the federal government could currently borrow money on the capital markets for zero percent and less.
The proposal from the Union actually amounts to a grant business. On the bond of 50 billion euros annually interest payments of one billion euros would be due. That could save Scholz, if he would take the money itself through the federal government on the financial markets. Another problem is that the new Climate Foundation would create a shadow budget that would undermine the debt brake enshrined in the Basic Law. In addition, the foundation would rival the credit industry because it lends much cheaper loans than the banks. The demand from companies and consumers still positive lending rates.
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.
It is also unclear where the capital resources for the foundation should come from. Altmaier's considerations envisage that the federal government will once pay out five billion euros, a further billion euros in each subsequent year of its existence. How the sums are to be financed, does not betray his concept.
Next Friday, the coalition committee will meet to discuss further steps in climate policy. It is unclear whether the dispute is already settled or only on 20 September. Then the Coalition in the Climate Cabinet wants to conclude its package with measures against global warming.
