Ecological tranformation and sound public finances are no contradiction

New contribution by Silke Uebelmesser to the Bertelsmann Stiftung's "Economics of Transformation" blog
Image: Roman Wimmers auf Unsplash


The ruling of the Federal Constitutional Court has drawn a lot of attention to budget rules and in particular to the debt brake. The focus is on the question of whether the limitation of debt possibilities hinders the upcoming transformation tasks. However, this distracts from the real problem: the lack of prioritization of future investments over spending on current consumption.

The current generation will not be able to avoid bearing a large part of the financial burden for the upcoming investments themselves. It is not a question of choosing between an ecologically transformed economy and sound public finances. This would imply a contradiction that does not exist. Rather, future generations have a right to both in order to have room for maneuver for their own decisions and to be able to react to unforeseeable developments.

This here for the contributionExternal link (in German).