Erneute Reform der Schuldenbremse erforderlich

The reform of the German debt brake adopted in March 2025 offers an opportunity to address past fiscal policy failures in the areas of defense capabilities, infrastructure, and climate protection. However, the fiscal package exhibits serious shortcomings both in terms of its design and implementation, which should be addressed through a further reform of the debt brake and a reorientation of fiscal policy. To this end, first, the borrowing limits for defense spending should be reduced over the medium term. Second, in contrast to the special fund currently in use, a permanent borrowing facility for public investment should be created, aligned with EU fiscal rules that may need to be reformed. Third, fiscal policy leeway during crises should be expanded by allowing for a gradual return to the debt brake’s standard ceiling after the emergency clause has been invoked.