The bill to loosen the new "debt brake" regulations was passed by the German Federal Parliament (Bundestag) in the Basic Law (German Constitution) on March 18.
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| The German Parliament officially passed a bill to loosen the 'debt brake' regulations. (Source: Collage The Gaze) |
The bill to loosen the “debt brake” is expected to pave the way for future governments to borrow heavily to fund defense and infrastructure spending. However, it could also hit credit markets, raise interest rates, and create debt for consumers.
The bill has been sought by the two parties negotiating the ruling coalition, the Christian Democratic Union/Christian Social Union (CDU/CSU) and the Social Democratic Party of Germany (SPD), to pass the current Parliament in the final working days of this legislative session.
NATO Secretary General Mark Rutte congratulated Germany on the bill.
“This sends a strong message of leadership and commitment to our common security,” he wrote on social media. “It will make a profound difference to NATO’s deterrence and defense.”
Meanwhile, Germany's outgoing Health Minister Karl Lauterbach, of the SPD, hailed the decision as "historic" and signalling an increase in jobs.
“The historic vote in favour of greater investment and improved defence capabilities has been successful. This is entirely reasonable. We must not leave our country defenceless or destroyed by austerity measures,” Karl Lauterbach stressed.
SPD lawmaker Katja Mast praised lawmakers for deciding to create a special fund worth 500 billion euros ($545 billion) to boost Europe's largest economy.
“With a special fund worth 500 billion euros, we are implementing the largest infrastructure program in German history,” said Ms. Mast.
The funds will also be used to cut red tape and improve digitalization, signaling the start of a new era of growth for Germany.
European Commission (EC) President Ursula von der Leyen affirmed: "Germany's decision to increase public investment and relax debt rules is great news. This sends a very clear message to Europe that Germany is determined to invest heavily in defense."
Agreeing with her, Danish Prime Minister Mette Frederiksen said: “This is great news because we need a strong Europe.”
However, not everyone supports the bill.
Alice Weidel, leader of the far-right Alternative for Germany (AfD) party, has harshly criticized the loosening of the “debt brake” rule, saying it would be a “fatal blow to the euro.”
Today's decisions will be a burden on future generations, consumers and taxpayers, according to Ms. Weidel.
Source: https://baoquocte.vn/quoc-hoi-duc-thong-qua-du-luat-noi-long-phanh-no-chi-500-ty-eur-thuc-day-kinh-te-chu-cich-ec-ca-ngoi-308093.html
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