Volker Wieland speaks out against softening the debt brake (FAZ, Handelsblatt)

In a statement for the budget committee of the German Bundestag, Prof. Volker Wieland has taken a stand against softening or eliminating the so-called debt brake. In his opinion, the current legislation provides enough scope in order to carry out necessary investments.

In his statement, Wieland points out that the term "investment" in the public debate does not comply with official statistics. e.g. building schools ranks among capital expenditures whereas the personnel spending for the teachers counts as state consumption.

In his view, the debt brake does not pose constraints on investments. He argues that currently and in the future, there is enough room for maneuver in order to incur the necessary expenditures with regard to climate change and structural change.

Statement of Prof. Volker Wieland of 2 March 2020 (PDF)

FAZ: "Die neue Lust auf den alten Staatskredit" (€)
Handelsblatt: "Finanzministerium spielt Aufweichung der Schuldenbremse durch"
Die Welt: "Mit zwei Ideen will Scholz die Schuldenbremse umgehen"