3 billion special funds is wishful thinking / central question of the debt brake remains open
Now it's time to "let the cat out of the bag," was the first reaction of the Saarland FDP to the announcement by the state government to establish a special fund of 3 billion euros. "Taking on debt is the right thing to do when it is used for meaningful investments," the Free Democrats continued.
When it comes to preserving jobs, a concrete return flow regarding a corresponding loan uptake is calculable. However, taking out 3 billion as so-called special funds without restrictions could have devastating consequences if the state makes specific pre-financing and subsequently companies do not or cannot keep their commitments. Regarding the potential establishment of S-Volt, it has not yet been clarified what securities, specifically guarantees, have been provided in case Saarland experiences such a case of non-acceptance.
Roland König, the financial policy spokesperson of the FDP Saar, said literally: “The use and repayment of another special fund are completely open, especially since a special fund had already been established due to the Corona pandemic. Above all, it remains completely unclear how this does not circumvent the debt brake and how the expenditures for the state budget in 2023 and the following years are to be financed in full compliance with the constitution.”
