Habeck warns of permanent damage to the German economy - what happens to the debt brake?
Created: 09/27/2022, 16:02
By: Moritz Serif
Robert Habeck (Bündnis 90/Die Grünen), Federal Minister for Economic Affairs and Climate Protection, is looking for an alternative to the gas surcharge.
© Kay Nietfeld/dpa
Economics Minister Habeck fears consequences for the German economy.
Meanwhile, there are discussions about the debt brake.
Berlin – Economics Minister Robert Habeck (Greens) warns of permanent damage to the German economy due to the energy price crisis.
He spoke out in favor of extensive financial aid from the federal government.
"Sometimes it's just a smoldering fire, sometimes the hut is already on fire.
In any case, the sustainability of our economy is in danger, there is a risk of permanent damage.
We now have to muster all the financial strength to bring the good substance of our economy over the crisis, to secure jobs and to protect the investment and future viability of our economy."
Aid programs are being worked on at full speed, and the important question of financing is being discussed in the government.
"We must not lose any time here." On Wednesday, Chancellor Olaf Scholz (SPD) will meet with the heads of government of the federal states.
Habeck had already announced plans to expand government aid programs for companies.
However, the question of financing remains open.
Habeck brought a special fund into play.
A special pot worth 100 billion euros had been decided for the Bundeswehr.
Energy crisis: will the debt brake be adhered to?
It is disputed in the coalition whether the debt brake anchored in the Basic Law will be observed again in the coming year.
Finance Minister Christian Lindner (FDP) insists on this.
The debt brake had been suspended due to the corona pandemic.
It only allows the federal government to take out new loans to a limited extent.
If the gas levy is overturned, it is unclear where the money will come from to support gas importers.
A gas price brake is also under discussion.
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Family businesses are demanding noticeable relief.
The companies should be able to produce at competitive prices in Germany, said Rainer Kirchdörfer, head of the Foundation for Family Businesses and Politics.
“Companies are running out of time due to rising energy prices.
The federal government should quickly put an effective brake on gas and electricity prices on the way.”
Energy crisis: With a gas price cap, things could get tight for the debt brake
The President of the German Institute for Economic Research (DIW), Marcel Fratzscher, has doubts about compliance with the debt brake in view of the costs of a gas price cap.
"The order of magnitude of 30, 40, 50 billion or more is quite realistic," he told RTL/ntv.
DIW expert Claudia Kemfert does not consider a gas price cap to be sensible.
Subsidizing prices is enormously expensive for the state and there are not enough incentives to save gas, she told the
Rheinische Post
.
(Moritz Serif)