Dresden (dpa / sn) – The German Trade Union Confederation (DGB) in Saxony is calling for a reform of the debt brake. “Saxony’s insanely inflexible debt brake must finally arrive in the reality of several crises. The consequences of the corona pandemic, the Ukraine war and the uncertain energy supply with sharp price jumps require a financially capable state,” explained DGB boss Markus Schlimbach on Wednesday in Dresden . Insisting on the existing regulations could lead to the Free State being unable to act and losing its competitiveness.
For a reform of the debt brake, the constitution must be changed. Schlimbach believes that this is necessary so that future governments will also have leeway for investments. So far, new borrowing has only been possible in the event of natural disasters and emergencies, as well as a sharp drop in income due to the economic downturn. At the beginning of the pandemic in the spring, Saxony made use of it for the first time in many years. The government was authorized by the state parliament to incur debts of up to six billion. An extension of the repayment periods is currently being discussed.
Schlimbach also commented on the planned increase in land transfer tax in Saxony, which has been criticized by business, among others. In the current situation, raising this tax is a viable option for building a balanced budget. But for the coming years, the scope will become increasingly narrow. “The tax increase instrument should be almost exhausted,” Schlimbach said in the direction of employers’ associations and chambers. “Being against an increase in the real estate transfer tax and against a constitutional amendment do not go together.”
