Federal Economics Minister Robert Habeck has spoken out in favor of a “short-term” and “massive” tax relief program for the economy. In order to finance this, the Green politician called for a reform of the debt brake at a readers’ meeting of the “HNA” in Kassel on Monday evening. More flexibility would allow more to be done for the construction industry and for more investments by companies. However, Habeck admitted that there is currently no political majority in favor of reforming the debt brake.
Habeck’s statements in response to a reader question come shortly after the FDP party conference. In view of the weak growth in Germany, the FDP decided on a paper for an “economic turnaround”. The FDP is calling, among other things, for the complete abolition of the solidarity surcharge and tightening of social benefits.
Habeck did not respond to the FDP paper. With a view to the negotiations within the federal government about the 2025 federal budget, he said that funds were scarce. However, economic stimulus would be necessary. The mood is currently brightening. The crisis of the last two years with high energy costs and high inflation appears to be coming to an end. “If I could do as I wanted now, then I would say: Let’s take the bull by the horns and invest now. And the investments from construction to new purchases for the machines, you can also write them off. So now it’s worth it “It is worth investing in Germany again because we are implementing a short-term but powerful relief program, a tax relief program,” said Habeck. “That would now give the impetus for things to really get started.”
But this means less tax revenue. “Less tax revenue means that the budget is not balanced and that’s why this doesn’t happen. That’s the reason why we’re dragging this leaden time with us in our clothes, unless the companies and consumers in Germany are so determined that they do it anyway.” Impulses from the state remained far below what he actually considered necessary, said Habeck – “because to a certain extent we have tied our own hands behind our backs, I might say so, but that’s not how you win a boxing match.” .
What the country needs is investment and innovation. But the options are “very, very limited” because the budget has to be balanced at the end of the year. With a view to reforming the debt brake, Habeck said he believes that this discussion will be held again before the federal election.
