The Left supports reform of the debt brake – more money for education!

The Left supports reform of the debt brake – more money for education!

On July 2, 2025, the left-wing faction in the Hamburg parliament approved the debt brake reform proposal from the SPD and the Greens. This marks a decisive step towards a more flexible financial policy. In contrast, a joint proposal with the CDU that envisaged stricter spending rules was rejected. Xenija Melnik, the economic policy spokeswoman for the Left, emphasized the need to use the new financial leeway to enable investments in essential areas such as education, health, science and housing.

The Left contradicts the strict spending discipline demanded by the CDU. This could not only hinder the planned reform, but also disadvantage the social sector. Instead, the left-wing faction is calling for adapted investment planning that focuses on future-oriented investments. In addition, there is a demand for the restoration of the golden rule of financial policy, which states that investments must not be blocked by debt brakes.

Investment backlog and necessary reforms

The reforms are particularly urgent given the significant investment backlog in public infrastructure in Germany. Numerous areas are affected, from traffic to digital infrastructure, which leads to current problems such as unpunctual trains, closed bridges, dilapidated schools and a lack of daycare places. According to the Ipsos Global Infrastructure Index, positive perceptions of infrastructure have fallen from 54% in 2016 to just 35% in 2024. This trend is an alarming signal of the need for comprehensive investment.

In order to cover the investment needs, experts estimate that Germany will need a total of 600 billion euros additional in infrastructure investments to ensure a minimum level of functionality over the next few years. Up to 400 billion euros are considered necessary over the next ten years. Massive investments are required, particularly in the areas of transport, education and decarbonization.

The role of municipalities

While municipalities account for 41% of public investments, they are often over-indebted. By 2036, 19.5 million baby boomers will retire, widening the workforce gap, while only 12.5 million new workers will be able to join. This increases the urgency for more immigration or increases in productivity.

The need to make local authorities' income more stable and to adjust the debt brake is being recognized more than ever. Through its support for the reform, the Left Party in Hamburg shows that it is ready to actively address the challenges of the investment backlog and demographic changes. The future of schools, transport infrastructure and social institutions depends on these reforms.

In summary, it can be said that adjusting the debt brake is of central importance not only for Hamburg, but for the whole of Germany in order to make necessary investments and ensure sustainable social development. This reports Tixio, while the foundations of this analysis are also in the representations of Federal Agency for Civic Education are recognizable.