Lindner rejects EU proposals for debt reform

Federal Finance Minister Christian Lindner continues to reject the EU Commission's proposals to reform European debt rules. Among other things, they envisage individual plans for the EU countries to reduce their budget deficits. Comprehensible and credible reduction paths are needed, said the FDP politician on Tuesday in Brussels: "This must not be left to one's liking." The EU Commission's proposals would be like entering a new continent, with unclear consequences. They are therefore not capable of consent. "They need to be modified on essential issues."

Unlike the EU Commission, which is already hoping for a breakthrough in the intended reform of the regulations in March, Lindner only spoke of an exchange of ideas that would begin on Tuesday at the meeting of EU finance ministers. "We don't have more than one start yet." There is a responsibility not to strangle the younger generation with high interest rates. "We must return to sustainable, stable public finances."

The previous cornerstones of the debt rules - an upper limit for the budget deficit of three percent of economic output and 60 percent for the entire mountain of debt - are not up for discussion. However, the federal government recognizes that there is a need for new investments, according to Lindner. Therefore, there could be adjustments to the details of the rules.

EU Economic Commissioner Paolo Gentiloni said in Brussels that there was increasing agreement on some important elements, such as a slower reduction in deficits. In addition, it is undisputed that there must be a reform for more sustainable debt levels. "We don't have unlimited time." There must be further progress and some "conclusions" as early as next month. However, that won't be easy. Vice President of the EU Commission Valdis Dombrovskis added that things are now getting tough. After an agreement in March, the Commission would then draw up concrete legislative proposals.