Crisis as an opportunity
How can the dispute over the debt brake be solved?
December 1, 2023, 10:01 a.m
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The Federal Constitutional Court’s ruling on how to deal with the debt brake represents a shock for Germany. Since all the tricks used to circumvent the spending limits can now de facto no longer be used, important projects are in jeopardy. Climate protection projects, chip factories, railway expansion, everything is now being questioned.
The podcast “Zero Hour” analyzes the consequences of the verdict and possible ways out with Benedikt Becker, editor in the capital office of “Stern”. “The scope for 2024 and 2025 is of course very narrow,” says Becker. “Technically speaking, it’s not a problem that the federal government can’t solve.”
In the short term, the coalition could try to declare emergencies and thus nullify the harsh effect of the debt brake – which Becker doubts. “Basically the principle of hope applies,” says Becker.” After all, there is a real danger that the CDU and CSU will go to the Federal Constitutional Court again to have the budget for 2024 examined.
In the longer term, however, politics will rely on other instruments, such as emissions rights in climate policy for heat and transport. “The idea behind it is to set the price signal – and, in the best case scenario, to give the money back to the people via climate money – in order to compensate for social hardships,” says Becker. Ultimately, the current crisis could even be an opportunity when it comes to limiting the function of the state. “This provides an opportunity to clear out the household.”
Listen in the new episode of “Zero Hour“
- Which is why you also have to worry in Dresden
- What other countries think of the German debt dispute
- Why the debt brake will probably remain in place
You can find all episodes directly here RTL+, Apple or Spotify or via Google.