Die Corona-Krise und die sozial-ökologische Transformation: Herausforderungen für die Finanzpolitik

The Corona crisis and the socio-ecological transformation pose difficult challenges for German fiscal policy. On the one hand, there are massive additional public finance requirements in the dimension of 600 to 800 billion euros over the next ten years ; on the other hand, in its coalition agreement the German government has ruled out fundamental reforms of the debt brake while not envisaging any tax increases. This rules out options that would actually be obvious for opening up the necessary fiscal policy space. However, the coalition agreement contains numerous instruments for mobilising additional borrowing under the debt brake, which are in principle suitable for meeting the key challenges facing the federal government in the coming years, even if the specific form they take is still open, concrete figures are lacking and legal risks exist. The situation is more problematic for the states and municipalities. There is a high risk that investments, especially by local authorities, will fall short of requirements in the coming years.