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GERMANY: CDU's Merz 'Rules Out' Debt Brake Reform In Near Future

GERMANY
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Following the 23 Feb federal election, speculation has swirled regarding the prospect of reform to the constitutional debt brake (see 'GERMANY: CDU/CSU Figures Voice Unease At Decisions Being Made By Outgoing Parl't', 1026GMT). There are notable divisions within the centre-right Christian Democratic Union (CDU) on reform, with some fiscal conservatives in favour of finding spending cuts elsewhere rather than reforming the brake. Reuters reports comments from Freidrich Merz, CDU leader and the presumptive next chancellor, saying that "It is much too early to say anything concrete" on a reform of the debt brake, but it "is ruled out in [the] near future", saying that "this is a complex task". 

  • Incumbent Finance Minister Jörg Kukies from the centre-left Social Democrats (SPD) says in an interview with Stern that parliamentary groups "must hold talks quickly" on the issue. Says that he has "nothing in principle against [an] expedited procedure" for reform.
  • Speigel reports First Deputy chair of the CDU/CSU in the Bundestag Thorsten Frei "has ruled out reforming the debt brake. In an interview with the Phoenix TV channel, he said that amending the constitution would not happen with the Union’s support. However, he indicated openness to discussing a special fund for Ukraine aid and/or military equipment for the Bundeswehr."
  • Chair of the SPD parliamentary group Rolf Mützenich has expressed frustration with Merz's debt brake stance, saying "[Reform] was always rejected." He said the SPD will not approve any plan “that isn’t thought through.”
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Following the 23 Feb federal election, speculation has swirled regarding the prospect of reform to the constitutional debt brake (see 'GERMANY: CDU/CSU Figures Voice Unease At Decisions Being Made By Outgoing Parl't', 1026GMT). There are notable divisions within the centre-right Christian Democratic Union (CDU) on reform, with some fiscal conservatives in favour of finding spending cuts elsewhere rather than reforming the brake. Reuters reports comments from Freidrich Merz, CDU leader and the presumptive next chancellor, saying that "It is much too early to say anything concrete" on a reform of the debt brake, but it "is ruled out in [the] near future", saying that "this is a complex task". 

  • Incumbent Finance Minister Jörg Kukies from the centre-left Social Democrats (SPD) says in an interview with Stern that parliamentary groups "must hold talks quickly" on the issue. Says that he has "nothing in principle against [an] expedited procedure" for reform.
  • Speigel reports First Deputy chair of the CDU/CSU in the Bundestag Thorsten Frei "has ruled out reforming the debt brake. In an interview with the Phoenix TV channel, he said that amending the constitution would not happen with the Union’s support. However, he indicated openness to discussing a special fund for Ukraine aid and/or military equipment for the Bundeswehr."
  • Chair of the SPD parliamentary group Rolf Mützenich has expressed frustration with Merz's debt brake stance, saying "[Reform] was always rejected." He said the SPD will not approve any plan “that isn’t thought through.”