In view of the foreseeable burdens on the economy and consumers, Lower Saxony's Prime Minister Stephan Weil is pressing for a quick decision on suspending the debt brake.
As early as the Prime Ministers' Conference on September 28, agreement should be reached that "we are in an emergency and that we have to suspend the restrictions imposed by the debt brake in this situation," Weil told the German Press Agency.
It is foreseeable how stressful the year 2023 will be socially and economically.
"I can't imagine that we can get through this situation without at least partially borrowing," emphasized Weil.
“Now is the time when we can still set the course.
And we should definitely do that.”
The debt brake anchored in the Basic Law stipulates that the budgets of the federal and state governments are to be balanced without income from loans.
There is, however, a leeway that for the federal government amounts to a maximum of 0.35 percent of gross domestic product.
In the event of natural disasters or other emergency situations, the debt brake can be suspended, which happened in 2020 and 2021 because of the corona pandemic.
Lindner: Suspension of the debt brake only in an emergency
In the current energy crisis with drastic price increases, Federal Finance Minister Christian Lindner (FDP) sees no reason to suspend the debt brake again.
However, he reserves the right to take such a step as a last resort.
On September 28, the Prime Ministers of the federal states will meet with Chancellor Olaf Scholz to discuss the energy crisis.
The traffic light coalition in Berlin has decided on a relief package worth 65 billion euros, in which the federal states should also participate.
According to Weil, the costs of the crisis will be significantly higher if the state does not take on debt to intervene even more.
He does not expect a coalition dispute with the FDP.
"I'm sure it won't turn into a coalition conflict, but ultimately reason will decide."