BERLIN: German Chancellor Olaf Scholz expressed his support for reforming the country’s constitutionally-enshrined debt brake for the first time on Saturday. However, he clarified that he does not currently see any possibility of implementing such reforms immediately.
Amending the debt brake rules, which currently limit public deficits to 0.35% of gross domestic product, would necessitate a two-thirds majority in both the upper and lower houses of parliament.
Scholz’s coalition partner, the Free Democrats (FDP), staunchly defends the debt brake. Earlier this week, the chancellor himself appeared more skeptical about the prospect of reform.
Nevertheless, several state leaders from the opposition conservatives have indicated their willingness to consider changes. This is because, unlike the federal government, the states are no longer permitted to incur new debts.
Speaking at an event for his Social Democrat party, Scholz remarked, “I believe that the current wording of the debt brake in the constitution may need revision. This is a growing realization. Therefore, I think that during quieter times, there may be an opportunity for reform when all parties come together to discuss it.”
