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Head of the Chancellery Braun: The end of the pandemic is not in sight
Photo: Oliver Killig / DPA
Chancellery chief Helge Braun (CDU) is in favor of suspending the debt brake for a longer period in view of the financial burdens caused by the corona crisis.
"The debt brake will not be adhered to in the coming years, even with otherwise strict spending discipline," writes Braun in a guest article for the "Handelsblatt".
The economic efforts are necessary, not least in order to survive in competition with the other economic powers, writes Braun with a view to the economic success of the Chinese economy.
At the same time, Braun is against using the exception for natural disasters in the coming years as in 2020 and 2021.
That would open a "gateway to permanent relaxation of the debt rule."
Because it is "completely unclear" how long the pandemic justifies an exception.
Instead, Braun proposes an amendment to the Basic Law that "provides for a reliable degressive corridor for the coming years for new borrowing and a clear date for the return to compliance with the debt rule."
The freedom gained in this way enables citizens and companies to avoid additional financial burdens to forego tax increases.
In view of the enormous burdens on the social security funds, this is not easy to implement.
In particular, the high expenses for short-time working allowance would have consumed the reserves of the unemployment insurance, and the burden on health insurances would naturally be extremely high in a pandemic.
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