German Finance Minister Calls for Reform of Debt Brake to Address Investment Shortfalls

Jörg Kukies argues that the current debt brake limits critical spending on infrastructure and defense, urging targeted changes to meet future needs.

Germany's Finance Minister Jörg Kukies has called for a reform of the country's constitutional debt brake, citing its role in hindering necessary investments.
The debt brake, implemented in 2009, restricts federal borrowing to 0.35% of GDP, with stricter rules for states, except in emergencies.
Kukies emphasized the need for increased spending on infrastructure, such as bridges, schools, and kindergartens, which have suffered from decades of underinvestment.
He highlighted the necessity of boosting defense budgets by at least €30 billion annually by 2028 to fulfill international commitments.
While acknowledging the debt brake's past benefits, Kukies stressed that relying solely on budget cuts to fund future investments is unrealistic and requires cross-party solutions.