And as it approaches Elections Early next year, debate is increasing between parties about the suitability of this measure to ensure stability German economy In light of escalating global challenges.
Statements Merkel It sparked mixed reactions, as some believe it may contribute to enhancing financial flexibility, while others warn of the risks of accumulating debt.
In her upcoming memoir published Tuesday, she wrote: Merkel The basic idea behind the policy remains true, but she added: “In order to avoid social unrest and deal with changes in the age structure of the population, the debt brake must be reformed to allow more borrowing for future investments.”
The debt limit has become the subject of intense discussion as parties prepare for their election campaigns ahead of parliamentary elections expected to be held in February 2025.
The debt brake was included in the Constitution in 2009, and largely prevents the federal government and the 16 state governments from financing their budgets with new loans. While state governments are subject to an absolute ban on borrowing, the federal government is allowed to borrow up to 0.35 percent of GDP, except in emergencies.
Merkel’s statements put her in the face of many politicians in her conservative party, the Christian Democratic Union, which along with its Bavarian brother, the Christian Social Union, insist on adhering to this policy.
Merkel justified her position by referring to the economic challenges facing the country, such as increasing defense spending, maintaining development cooperation and transitioning to climate neutral living by 2045, among other things.
Merkel is scheduled to present her memoirs, titled “Freedom. Memories 1954-2021,” at the Deutsche Theater in the capital. Berlin Today is Tuesday.
The veteran politician co-authored this memoir with her long-term political advisor, Beate Baumann. According to publisher Kippenhauer Watch, the book consists of approximately 700 pages and offers “a unique insight into the internal mechanisms of power.”
