on october 4th, the director of the german institute of economic research, mr. frazcher, said it was feasible for the country to increase investment in climate protection and digitalization without violating the debt brake.
he argues for a reserve of about 500 billion euros for future investments that could be used over the next decade to cover climate protection and digitalisation, as the debt brake on the deficit is expected to start again in 2023 or 2024.
mr frazscher is optimistic about the chances of a deal between the greens and the ldp. the ldp relies on the market, while the greens rely on the state to set strict framework conditions and invest.
“these are not contradictory, they are two sides of the same coin,” frazscher stressed. mr vratscher also wants some innovations in the new government led by the spd or the alliance party, such as bringing coal phase-out forward to 2030 and the necessary reforms to some of the social systems.
