DGB criticizes budget: Debt brake is a brake on the future

BERLIN (dpa-AFX) – The German Trade Union Confederation (DGB) has criticized the federal government’s budget plans. “A cutback course is basically unnecessary, tends to be antisocial and harmful to economic policy,” said DGB board member Stefan Körzell of the German Press Agency. The government is sending the wrong signal with the budget. Cuts directly depressed domestic demand and economic output. “In view of the current, precarious economic situation, this is counterproductive in terms of economic policy.”

Instead, the DGB board called for additional state spending and “massive investments” in transport, infrastructure and digitalization. “Hundreds of billions are being invested in future investments in China and the USA. If Germany slows down here, it will lose touch for a long time.”

The federal cabinet wants to adopt the government draft for the federal budget for 2024 this Wednesday. Federal spending is to be reduced significantly to EUR 445.7 billion after EUR 476.3 billion this year. After crisis-related additional spending in previous years due to Corona and the energy price crisis, an austerity course is now to be taken and the debt be lowered. This is intended to comply with the debt brake enshrined in the Basic Law.

“The debt brake is a brake on the future,” criticized Körzell. It should no longer stand in the way of sensible and necessary credit-financed investments./jr/DP/zb