Overview

• 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.