Just before the Bundestag elections, IG Metall is pushing for greater investment to strengthen East German industry and is also calling for an end to the debt brake. "We need companies that are committed to Germany as a location and invest here instead of just complaining," said Dirk Schulze, head of the Berlin-Brandenburg-Saxony district of IG Metall, at the union's annual press conference in Berlin. The state must invest massively in the future, for example in infrastructure, electromobility and the expansion of renewable energies.
Election manifestos without financial cover
The Bundestag election is also a "decision on the direction of economic policy". Although the party manifestos of the CDU and FDP, for example, contain numerous investment projects, they often lack financial backing. Schulze hopes that this is "not a maneuver for electoral reasons".
The debt brake enshrined in the German constitution in 2009 largely prohibits the federal and state governments from financing their budgets with the help of new loans. While an absolute ban on debt applies to the federal states, the federal government is permitted net borrowing amounting to a maximum of 0.35 percent of gross domestic product. There are exceptions to the debt brake, for example in certain emergencies.
Union chancellor candidate Friedrich Merz declared a few days ago that he was prepared in principle to discuss the debt brake. However, this topic is "certainly not at the top of the list". First of all, all possibilities must be exhausted to reduce expenditure, increase revenue and make the public budget more efficient before a debate on the debt brake is held.
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