Financial expert criticizes the suspension of the debt brake for 2023 - Kubicki and Frei are worried, but Lindner is planning a supplementary budget

Financial expert criticizes the suspension of the debt brake for 2023 - Kubicki and Frei are worried, but Lindner is planning a supplementary budget

According to a report by www.n-tv.de,

The planned suspension of the debt brake for 2023 is causing disputes within the parties. Finance Minister Lindner sees the step as necessary, while FDP Vice President Kubicki speaks of trust problems and calls for savings in government spending. The Union also criticizes the suspension and warns against a weakening of the debt brake.

Financial experts are critical of the suspension of the debt brake, as it could cause trust problems in the market and endanger intergenerational equality. The federal government's increasing debt this year due to the suspension as well as the planned new debt of over 85 billion euros are alarming the financial industry. The discussion about a possible suspension of the debt brake beyond 2023 and a reform of the debt brake increase the uncertainty regarding budget policy and could lead to volatile market reactions.

The planned suspension of the debt brake and the federal government's planned new borrowing will probably lead to an increase in national debt. This could affect interest rates and inflation in the long term, which in turn could impact various sectors of the economy and the financial industry. The uncertainty surrounding the reform of the debt brake and the discussion about savings and investments could lead to a volatile market situation that should be monitored closely by investors and financial experts.