Financial expert criticizes the debt brake: Lindner is planning partial reforms to adapt to the economy and doubts recent decisions.

Financial expert criticizes the debt brake: Lindner is planning partial reforms to adapt to the economy and doubts recent decisions.

According to a report by www.n-tv.de, Federal Finance Minister Christian Lindner is planning a partial reform of the debt brake in order to better adapt the amount of possible debt to economic fluctuations. This is to be done by revising the calculation of the so-called economic component, which would leave more leeway in the event of a downturn. According to Lindner, the reform is not intended to increase the possible debt over several years, but rather to reflect the current state of economic research.

The debt brake anchored in the Basic Law has come under criticism following the federal budget chaos because it only provides a certain amount of leeway for taking out loans. A major reform would require a two-thirds majority in the Bundestag and Bundesrat, which is rejected by the FDP and parts of the CDU/CSU. However, no change to the Basic Law is necessary to adjust the economic component.

The planned reform could impact the financial market and the financial sector, as adapting the debt brake to economic fluctuations would enable more flexible handling of public debt. This could have a positive impact on economic stability and investment activity. However, the actual impact depends on the precise design and implementation of the reform.

Lindner also expressed concerns about the decision to increase the kerosene tax and the abolition of tax breaks for agricultural diesel. These measures could have a direct impact on the industries and companies affected and are therefore the subject of further discussion within the governing coalition.

Overall, it remains to be seen how the planned reforms will be implemented and what long-term effects they will have on the financial market and economic development. The exact structure and calculation methods of the debt brake will be of crucial importance here.