DGB Saxony calls for a longer repayment period for corona loans

The German Trade Union Confederation (DGB) in Saxony has called for a swift reform of the debt brake.

The "ludicrously short repayment period" must be extended to 50 years, stressed DGB boss Markus Schlimbach on Tuesday in Dresden.

The list of households begins now.

Anyone who postpones decisions on the debt brake is forcing the ministries to make austerity budgets in all areas.

Dresden - Saxony, however, needs a courageous investment offensive to remedy the deficiencies in education, digitization, social security and the health system.

At the same time, challenges such as the transformation of industry, climate protection, structural change and demographics have to be mastered.

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Saxony had incurred debts for the first time since 2006 in the previous year.

The state parliament authorized the government to take out loans of up to six billion euros to cope with the consequences of the pandemic.

According to the legal requirements in the constitution, these loans must be repaid in just eight years.

After two grace-free years, the first tranche is due in 2023 - almost 300 million euros.

The coalition partners Greens and SPD, like the Left, are in favor of increasing the repayment period to up to 30 years.

To do this, however, the constitution would have to be changed, which would require a two-thirds majority.

dpa