Council of Experts wants to weaken the debt brake: declaration of financial bankruptcy

Council of Experts wants to weaken the debt brake: declaration of financial bankruptcy

According to a report by amp2.wiwo.de, the economists suggest weakening the debt brake and giving more time to comply with the standard limit for new structural debt.

These proposals could be particularly popular with the SPD and the Greens. In concrete terms, this means that the standard limit for new structural debt should be raised, depending on the level of debt. In addition, the method for calculating the structural deficit should be methodically reformed in order to better reflect the cyclically necessary financial requirements.

The impact could mean that future generations will have to pay higher taxes to pay interest on the additional debt. This can put a strain on the economy and the financial sector. The economists' proposals are seen as a declaration of intellectual and financial policy bankruptcy because they do not take into account the fundamental idea of ​​sustainability.

Overall, the proposals are controversial and could lead to tensions on the market and in the financial sector. It remains to be seen how politicians will react to these proposals and what impact they will actually have.