One advocates promoting structural change in the economy in the coming years through loan-financed investment programs, according to the paper reported by the "Süddeutsche Zeitung" (Thursday edition). “Debts are not good per se, but they are not bad either,” write the authors in the six-page concept entitled “How we can grow stronger out of the corona crisis with the right financial policy”.
It is precisely in the interests of future generations to make investments now, said Matthias Miersch, spokesman for the parliamentary left, to which about half of the 152 SPD members belong, to the SZ. It is about money for education and digitization, the fight against climate change is also very central. An overly rapid debt repayment, however, could, according to the position paper, strangle the economy. The authors also advocate revising the European fiscal rules. In their opinion, these are too narrow.
They therefore want to add a “golden rule for investments” to the German debt brake anchored in the constitution and the European Stability and Growth Pact - and to raise the permitted debt ratio. Up to now, it has been the case that the total debt of a state should not exceed 60 percent of the gross national product (GDP). However, because the sustainability of national debt depends on the performance of the economy and real interest rates, the rules should be adjusted accordingly. "Including a safety buffer for unforeseen crises, an increase in the upper limit from the arbitrary 60 percent to 90 percent of GDP is justifiable and sensible," says the position paper.