“What else is supposed to happen?”: Haseloff supports suspending the debt brake

“What else is supposed to happen?”
Haseloff supports suspending the debt brake

Saxony-Anhalt’s Prime Minister Haseloff is calling on the federal government to ensure “stimulus in the economy” – if necessary by waiving the debt brake. “The times of peace and icing on the cake are over,” said the CDU politician.

According to Saxony-Anhalt’s CDU Prime Minister Reiner Haseloff, the federal government should declare a budget emergency in order to launch a comprehensive economic program. “If the federal government were to declare an emergency, it could provide great momentum for the economy,” said Haseloff to the “Handelsblatt”. The state should reduce state taxes on energy “as much as possible and forego the revenue – in the expectation that we will then benefit again as a state with more growth.”

According to Handelsblatt, Haseloff expects the federal government to ensure competitive location costs, forego revenue and, if necessary, temporarily suspend the debt brake. “The times of peace and icing on the cake are over,” said the Prime Minister. “What else is supposed to happen? We are in an exceptional situation!” emphasized Haseloff, referring to the war in Ukraine, the energy crisis, the refugee crisis and inflation.

Haseloff called for “a coherent overall concept, including possible tax cuts.” The measures in the Growth Opportunities Act, which the federal and state governments are currently discussing in the Mediation Committee, are at best homeopathic doses. “We need an offensive to preserve the industrial core of our country,” warned the CDU politician.

Habeck wants corporate tax reform

Before that, the federal government must also make savings in the social sector: “Sound financial management must cover all areas of society.” The 2024 federal budget is characterized by massive savings. FDP Federal Finance Minister Christian Lindner had rejected tax increases as well as a new exception to the debt brake.

Federal Economics Minister Robert Habeck recently spoke out in favor of a corporate tax reform. “I also see that overall we have corporate taxation that is no longer internationally competitive and investment-friendly enough,” Habeck told “Welt am Sonntag”. “That’s exactly why we should think about how we can finance tax relief and tax incentives for investments in the future, for example, in order to really unleash the forces.” At the same time, however, he also pointed out the very narrow scope in public budgets.

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