How the planned increase in citizens' money influences financial policy

How the planned increase in citizens' money influences financial policy

According to a report by www.deutschlandfunk.de,
The discussion about the debt brake has come back into focus because the Scientific Advisory Board, which is affiliated with the Federal Ministry of Economics, is in favor of reforming the debt brake. The expert panel sees the need for the state to be able to invest appropriately due to structural tasks such as digital and ecological transformation, defense and infrastructure. The Advisory Board proposes that only initial investments that expand economic substance may be financed through debt. In addition, long-term financial planning should be improved and investments should be based on the European debt pact.

These recommendations could have significant implications for financial policy and the market as a whole. Sticking to the current regulation, as demanded by Federal Finance Minister Lindner and large parts of the opposition Union parties, could lead to insufficient financing of important structural projects and impair economic development.

For the financial sector, a reform of the debt brake could mean that new investment opportunities arise, which in turn could lead to an increased investment volume on the market. This could have a positive impact on the economy and economic growth.

Politicians will have to deal intensively with this issue in the coming days and weeks, as far-reaching decisions may be imminent that affect not only the financial sector, but also the entire economy.