Financial expert sees Left calls for abolition of the debt brake after the ruling of the Federal Constitutional Court

Financial expert sees Left calls for abolition of the debt brake after the ruling of the Federal Constitutional Court

According to a report by www.zeit.de, the Left called for the abolition of the debt brake in the Basic Law after the Federal Constitutional Court's ruling on 60 billion euros in Corona funds. A corresponding proposal was accepted on Saturday at the federal party conference in Augsburg. The Left plans to tax wealth in order to improve the state's revenue situation. She proposes to levy one percent on assets above one million net assets, with the tax being progressive for the super-rich.

The Federal Constitutional Court recently prohibited Corona loans from being subsequently reallocated to climate protection and the modernization of industry. This has led to a deficit of 60 billion euros in the Climate and Transformation Fund, a special fund that is economically separate from the core budget. The Left criticizes that investments in climate protection such as the modernization of buildings or the expansion of rail are now threatened and describes the debt brake as a brake on investments and the future.

As an expert on the real estate market, it can be concluded that the restrictions on investments in climate protection can also have an impact on the real estate market. In particular, building modernization projects could be delayed or even stopped, which could affect property values ​​in the long term. In addition, the expansion of rail as a sustainable transport project could have an impact on the attractiveness of real estate locations that are close to well-connected rail infrastructure. It would be advisable to keep an eye on further developments with regard to the debt brake and the planned wealth taxes in order to identify potential effects on the real estate market at an early stage and to react to them.