New advisor for Klingbeil: Südekum is pushing for reform of the debt brake!

New advisor for Klingbeil: Südekum is pushing for reform of the debt brake!

In a lively discussion in a Freiburg pizzeria, the challenges of German financial policy were discussed on May 30, 2025 between the economic economist Lars Feld and Lars Klingbeil's newly appointed personal advisor, Jens Südekum. Feld, who served as Christian Lindner's economic advisor until his resignation, has vehemently defended the debt brake and speaks out passionately against a reform sought by the Social Democrats and the Greens.

The debt brake is generally viewed critically, especially in connection with the federal budget for 2023 and the budget for 2026. While the SPD and the Greens are calling for the regulation to be relaxed in order to avoid necessary savings, the FDP, with the support of Feld, is sticking to the strict spending policy. Feld argues that the debt brake is important in order to avoid burdening future generations with high debt burdens and at the same time to remain flexible in times of crisis. Critics, however, warn that this is a hindrance to investments, especially with regard to climate neutrality.

New roles in the Ministry of Finance

The appointment of Jens Südekum as personal advisor for overall economic development under Minister Klingbeil represents a significant policy change. Südekum, professor of international economics at Heinrich Heine University Düsseldorf, is known for his expertise and follows the traffic light government's policies closely. He will work in a non-employee position within the ministry and his projects will be aimed at promoting investment and structural reforms.

Southern Germany's previous discussions about the debt brake have a direct influence on the political agenda. Südekum was part of a four-member working group that developed proposals for debt-financed special funds, including 500 billion euros for infrastructure projects and a possible relaxation of the debt brake for defense spending. These suggestions found their way into the exploratory talks between the Union and the SPD.

Positions on investments and subsidies

At the heart of this discussion is the different understanding of investments. While Südekum is of the opinion that a return to the “golden rule” is necessary in order to exempt investments from the debt brake, Feld rejects this. He argues that many expenditures declared as investments are actually subsidies, allowing real investments to be financed from the regular budget.

Feld also emphasizes that government spending on investments has increased faster than gross domestic product since 2009. Nevertheless, there are concerns that the current financial policy under the debt brake does not respond adequately to the structural change that has been identified. The demand for a proactive regional policy on the part of Südekum could be a key to maintaining existing industries in Germany.

The developments of the last few days show the interactions between federal politics and the economic conditions. Südekum's appointment could usher in a new phase in German financial policy, which must take into account both the challenges of the debt brake and the need for investments in the future. Both Südekum and Feld will play a crucial role in how these discussions continue.

For more information about the debt brake and the current discussion about economic policy in Germany, you can read the articles from the FAZ and t online read.