Klingbeil’s openness to credit-financed special assets
The ongoing budget dispute in the Ampel coalition, which includes the SPD, continues to push for more opportunities for new debts. Party leader Lars Klingbeil has made it clear that his party, instead of suspending the debt brake, could also imagine a credit-financed special fund for investments.
„First of all, all ministries need to look at where they can save. But it is also clear that we cannot cut 30 to 40 billion from a core budget,“ Klingbeil told the „Süddeutsche Zeitung.“ He expects that all possibilities will now be discussed „without ideology.“ „The BDI has just proposed a special fund for investments. The SPD would be immediately willing to discuss this.“
The Federation of German Industries (BDI) has lamented a massive investment backlog in Germany and therefore proposed multi-billion euro special funds – that is, credit-financed additional pots alongside the federal budget and outside the debt brake.
Struggle over budget draft
The Ampel coalition of SPD, Greens, and FDP has been grappling for months over a budget draft for next year. A double-digit billion gap in budget planning needs to be filled. FDP Finance Minister Christian Lindner insists on adhering to the debt brake – while pressure from the SPD has increased recently to use an exception and suspend it. However, Lindner also rejected the BDI’s proposal for special funds.
„If we now set the right impulses with the budget, we will see decent growth next year,“ Klingbeil argued. „If there are cuts now and new uncertainty arises, that will be stifled. This cannot be in the interest of the FDP finance minister either.“ And no one can really deny that the situation in Ukraine is exceptional. In exceptional situations, the Basic Law allows for the suspension of the debt brake – that is, the upper limit for loans in the federal budget.