The Federal Finance Minister wants to incur new debts of 96 billion euros in the coming year. He says why this is important – the AfD contradicts.
Band Finance Minister Olaf Scholz considers the debt burden to be bearable despite huge gaps in the budget. After the coronavirus crisis, Germany will have lower debt than many other countries before the outbreak of the pandemic, said the SPD chancellor candidate in Berlin on Tuesday.
The debt ratio in relation to economic strength rose to more than 80 percent in the 2009 financial crisis, this time it would probably be 75 to 76 percent. “That’s a good sign.”
The Bundestag is discussing the budget draft of the black-red coalition for 2021 this week. This provides for new debt of around 96 billion euros – the second highest after the record of 2020. “That is very, very much money,” said Scholz.
“Crises can weld together when the right people rule”
The aid measures to support the economy are unlikely to end abruptly. As an example, he cited the recently extended option for short-time work. “Failure to act would be much more expensive.” Thanks to solid budget management, the government has been able to counter the crisis with full force since 2014 – and must do so.
“Crises can weld together when the right people rule,” said Scholz: “And that is why I am very happy that we can get this budget off the ground and that we are sending out a sign of solidarity in this country.”
According to Scholz, the gross domestic product will fall by 5.8 percent this year, roughly as much as in the financial crisis. In the financial planning from 2021 to 2024, investments amounting to 199.2 billion euros are planned – considerably more than in earlier times. This will also trigger private investments and ensure additional growth, said Scholz.
The households of the AfD in the Bundestag consider the new indebtedness in the federal budget in 2021 to be excessive. “You have to talk about this debt – even in times of the Corona,” said the party’s budget spokesman, Peter Boehringer, on television. Boehringer is also chairman of the budget committee in the Bundestag.
“Of course this is at the expense of future generations and it is unconstitutional in this form,” he said. The debt brake can only be suspended if the budgetary emergency escapes the control of the state and that “really cannot be said anymore” in the third Corona budget, according to Boehringer.
And he added: “The health system is in no way overloaded.” The number of infected people has never been the criterion for a pandemic. The number of deaths would be limited. If the health basis is lacking, the budgetary one cannot exist either.