Dürr calls for courageous reforms: coalition under pressure for economic growth!

Dürr calls for courageous reforms: coalition under pressure for economic growth!

High pressure on the coalition: economic policy changes are necessary. FDP party leader Christian Dürr calls for “courageous reforms” to secure Germany’s economic ability to act. In a discussion with Sandra Maischberger, the economic plans of the traffic light parties (SPD, Greens, FDP) were examined, with Dürr pointing out the urgency of a change of course.

The moderator asked him whether the debt brake was directed against the economy. According to economist Achim Truger, economic growth could be 5% by 2025, provided appropriate measures are taken. Dürr criticized the reduction in investments in the federal budget from 17% to just 10% and called for the investment level of the previous government to be maintained.

Dispute over investments and planning security

Manuela Schwesig from the SPD vigorously contradicted Dürr and emphasized that the additional investments would provide planning security. She made it clear that the special fund would be distributed to municipalities and would not be used for consumer spending. Dürr described the current policy as a “shunting yard” to the detriment of future generations and called for capital coverage in social insurance to ensure financial sustainability.

He warned that without changes to the coalition agreement, a zero growth rate would continue. In the future, energy policy must also be thought of in a “completely new and bigger” way. In this context, he called for the adoption of a nuclear fusion law to promote nuclear fusion in Germany. Schwesig, on the other hand, criticized the planned allocation of network expansion costs to the population and the economy.

Climate protection as a financial challenge

Additional dimensions of the economic discourse are opening up with regard to climate protection in Germany, which is becoming a major financial construction site. There is considerable uncertainty about how to finance the necessary investments. The debt brake is being discussed as a possible approach to financing. According to estimates by research institutes, necessary investments in power lines, e-charging stations and a modern rail network require a one-off investment of at least 600 billion euros over the next ten years.

Some institutes even estimate this need at around 100 billion euros annually. In comparison, the current federal budget is around 450 billion euros per year. Ulrich Klüh from the Darmstadt University of Applied Sciences considers these estimates to be conservative and advocates loans for financing.

Political reactions and the debt brake

The political reaction to the debt brake is diverse: The Left is calling for its abolition, while the Greens and SPD are seeking reform. The Union, FDP and AfD, on the other hand, are committed to maintaining the debt brake. These views mark a clear divide in the political landscape, as the Union and the FDP focus on economic growth instead of taking out new loans.

The discussion about the debt brake is becoming more heated as Karen Pittel from the Ifo Institute emphasizes that the economy and the climate should not be viewed separately. The SPD and the Greens are planning to introduce a “Germany Fund” for investments through loans, while the possible new government coalition could aim for earmarked new special debt for climate protection and security.

Overall, it remains clear that there is a significant gap between the necessary investments and the funds actually available, a situation that is further fueled by the current discussions in the coalition.