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4w ago

Hamburg Parliament Approves First Reading to Tap Debt Brake for Investments

It takes advantage of a recent federal change to free up new debt for long-term projects.

Hamburg will seine Schuldenbremse lockern, um strukturelle Kreditaufnahmen tätigen zu können (Symbolbild).
Die Abgeordneten in der Hamburgischen Bürgerschaft entscheiden über eine Neuregelung der Schuldenbremse
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Overview

  • During the July 2 first reading the Hamburgische Bürgerschaft passed the amendment 104–10 with SPD, Greens, CDU and Linke in support.
  • The revisions to the state constitution and budget order enable Hamburg to borrow up to 0.35 percent of its GDP annually for structural deficits.
  • New borrowing will be ring-fenced for future-oriented projects in education, research, technology transfer and climate protection while existing spending remains balanced.
  • Finance Senator Andreas Dressel estimates the city can tap about €400 million per year along with €220 million annually from a federal special fund to fuel an investment ramp-up.
  • A decisive second reading is scheduled for July 16 and critics including the AfD and the Bund der Steuerzahler have warned it undermines fiscal discipline.