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Federal Ministry of Finance in Berlin: The cabinet wants to decide on the key points for the 2022 budget on March 24th
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Florian Gaertner / phototek / imago images
Numerous leading politicians from the CDU and CSU are critical of a deviation from the debt brake anchored in the Basic Law.
But now there are also increasing voices that consider a suspension in 2022 to be necessary.
The Union budget expert Eckhardt Rehberg told the "Rheinische Post": "We will have to suspend the debt brake in 2022 because the enormous gap that has arisen between lower tax revenues and increased expenditure due to the pandemic cannot be closed, unlike even more new debt."
With the additional expenditure for health protection, the social guarantee and economic aid, there are also enough points to justify the renewed suspension of the debt brake in 2022, said the CDU politician of the newspaper.
“But that will no longer be possible for the years from 2023 onwards.
The next federal government will have to make difficult decisions. "
The rules of getting into debt
Debt Brake Up Arrow Down Arrow
"The budgets of the federal and state governments are basically to be balanced without income from loans," says Article 109 of the Basic Law.
In future, the federal states will no longer be allowed to incur any debts that are independent of the economy, while those of the federal government will be limited to 0.35 percent of gross domestic product.
Valid since
For the federal government since 2016, for the federal states from 2020.
Commitment
The debt brake has constitutional status.
In economic crises or emergencies such as a natural disaster, the debt can be higher.
But there must be a binding plan for repaying the loans.
Debt leeway for Germany (measured against GDP 2018)
Around twelve billion euros for the federal government.
implementation
The federal government adhered to the debt brake until 2020.
Since then she has been suspended due to the corona crisis.
Maastricht criteria Up arrow Down arrow
Countries that want to adopt the euro must meet the convergence criteria of the Maastricht Treaty.
Accordingly, 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.
The Stability and Growth Pact (SGP) means that these requirements must also be complied with after joining the euro.
Valid since
1993 (Maastricht Treaty) and 1999 (SWP).
Commitment
The Maastricht criteria are anchored in EU law, but have often been violated.
The EU Commission has therefore initiated numerous so-called deficit procedures, but these have not had any financial consequences.
Debt leeway for Germany (measured against GDP 2018)
Almost 102 billion new debt and a good two trillion total debt.
implementation
Germany broke both rules early on.
Total debt fell below 60 percent in 2019 for the first time in 17 years, but exceeded this mark again significantly in the following year due to the corona crisis.
New borrowing was also well above the Maastricht hurdle in 2020 at just under five percent.
Because of the corona crisis, the EU suspended its deficit rules in the pandemic anyway.
Fiscal Compact Up Arrow Down Arrow
The fiscal pact was adopted as a tightening of the stability and growth pact after it could not prevent the European debt crisis.
Instead of just adhering to the three percent limit of the Maastricht criteria, the signatories of the fiscal pact should strive for balanced budgets in the medium term.
The state's indebtedness, which is independent of the economy, may not exceed 0.5 percent of the gross domestic product.
If the total debt is well below 60 percent, this limit increases to 1.0 percent.
Valid since
2013
Commitment
The signatory states must enshrine their goals in the constitution, as Germany did with the debt brake.
For the first time, the Fiscal Compact provides for the possibility of financial sanctions in the event of non-compliance.
So far, this option has not been used.
Debt leeway for Germany (measured against GDP 2018)
Almost 17 billion as long as the total debt is over 60 percent.
implementation
So far, Germany has complied with the fiscal pact's debt rules.
They are currently suspended because of the corona crisis.
Black Zero Up Arrow Down Arrow
When government income and expenditure are the same, the bottom line is the proverbial black zero.
In this case, new debt is not necessary.
One also speaks of a balanced budget.
Valid since
-
Commitment
The black zero is not a legal requirement.
As a common goal of the Union and the SPD, however, it can be found in the current coalition agreement.
Debt leeway for Germany (measured against GDP 2018)
None
implementation
In the federal government, the black zero was reached for the first time in 45 years and held until 2020.
Then the state made new debts of around 130 billion euros because of the corona crisis.
Previously, Chancellor Helge Braun had brought a temporary suspension of the debt brake into play in order to cushion the economic consequences of the corona crisis.
Rehberg himself was ultimately skeptical of the proposal.
"Solid state finances are not negotiable for the Union faction," he said in January - and rejected Braun's proposal.
Unnecessary gift to the finance minister?
CDU boss Armin Laschet recently told the Stuttgarter Zeitung: “Next year we will certainly have to use Article 115 of the Basic Law as an exception to the debt brake.” Laschet referred to “necessary investments in education and infrastructure plus the pandemic costs”, and will the CDU do not expect the citizens to increase their income tax in the coming election period either.
Rehberg said of the CDU chief's statements: "That is just Laschet's realism."
The Bundestag has already lifted the debt rule for households in 2020 and 2021 in order to enable higher new debt for the billions.
The federal cabinet wants to adopt the key points for the federal budget for 2022 on March 24th.
According to the debt brake anchored in the Basic Law since 2009, the federal government is only allowed to borrow to a limited extent, namely a maximum of 0.35 percent of economic output.
Exceptions are temporarily permitted in emergency situations.
Criticism of the statements on the debt brake comes from the FDP.
Their budget expert Otto Fricke described Laschet's statements as an "unnecessary gift" to Federal Finance Minister Olaf Scholz.
Laschet released the SPD chancellor candidate from the obligation to present benchmarks for a solid budget.
Fricke told the "Rheinische Post": "Armin Laschet opened the locks early with his announcement that he would also suspend the debt brake in 2022, although it is not yet clear whether it will rain and the water could really overflow."
Icon: The mirror
apr / dpa
