Budget crisis: Economic experts demand suspension of the debt brake and dismantling of the diesel privilege

Budget crisis: Economic experts demand suspension of the debt brake and dismantling of the diesel privilege

According to a report by amp2.wiwo.de, the government is struggling to find a solution to the budget crisis and economists Monika Schnitzer and Achim Truger are calling for measures to suspend the debt brake and dismantle the diesel privilege. It is argued that the economy is still severely affected by the energy crisis and that investments in faster expansion of energy infrastructure are needed to overcome the impact of the crises. The uncertainty in the economy and the population must be reduced and a political solution is urgently needed.

The impact of these demands could be significant. Suspension of the debt brake would allow the federal government to borrow more money to invest in the economy. This could lead to a short-term economic recovery by creating jobs and supporting businesses. However, there could be long-term impacts on government debt and financial stability if debt is not controlled.

Reducing the diesel privilege and increasing the CO2 price in transport could help improve environmental protection and achieve climate goals. However, this could also impact the automotive industry and consumers, particularly those with low incomes who rely on diesel vehicles.

Cutting financial aid for building renovations and chip factories could lead to important areas of economic infrastructure being neglected, while measures to reduce company car privileges and introduce a “temporary climate solidarity for high incomes” could influence income distribution.

Overall, the demands of economists show a wide range of possible political measures and their potential impact on the market and the financial sector. It remains to be seen how the government will respond to these recommendations and what specific measures will ultimately be implemented.