Articles for tag: economic policy, Haushaltsrecht, Schuldenbremse

The Economic Distortions of the Federal Constitutional Court’s Debt Brake Decision

Germany is not facing a debt crisis, but rather a serious budget crisis triggered by the ‘debt brake’ ruling of the Federal Constitutional Court (FCC). This crisis is deeper than the 60 billion in unused "Corona debts" being shifted to a climate fund, as reported in the media. More fundamentally, the court has mandated that the federal budget strictly adhere to the "principle of annuality" (Jährlichkeit). This is the most significant impact of the court's ruling, and from an economic perspective, it is quite perplexing.

19. Dezember 2023

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Lithium and Constitutional Change

On 20 April 2023, Chile’s President Gabriel Boric addressed the nation to announce the highly anticipated National Lithium Strategy. Boric announced the creation of a National Lithium Company (which must be enacted by Congress) and the establishment of public-private joint ventures, with a prominent role for the government.  His speech began by referencing the nationalization of copper in the late 1960s and its completion in 1971 under President Salvador Allende. The new lithium strategy has to be understood as something more than merely an economic proposal. It is part of a larger and elusive effort to reconfigure the State.

16. Mai 2023

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The ECB Cannot Ignore its Secondary Mandate

The EU Treaties oblige the European Central Bank to support the broader economic policies in the EU. Yet, the ECB has long ignored this part of its mandate. In the recently concluded monetary policy strategy review it only gets a brief mention. As we argue in a new report, this neglect of the ECB’s secondary mandate is illegal and should end as soon as possible.

25. November 2021

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Die Fastenpredigt des Verfassungsrichters

Buchrezension für Deutschlandradio Kultur Udo Di Fabio: „Wachsende Wirtschaft und Steuernder Staat“, Berlin University Press, Berlin 2010, 225 Seiten Fünf Jahre ist es her, dass Udo Di Fabio ein berühmter Mann wurde: 2005 veröffentlichte der Staatsrechtsprofessor und Verfassungsrichter sein Buch „Die Kultur der Freiheit“. Darin forderte er die Deutschen derart unverbrämt zur Rückkehr zu Nation und Seitenscheitel, zu Fleiß und Vaterlandsliebe, zu Kirchgang und Kinderkriegen auf, dass der Kritik über so viel Mut zur Reaktion der Atem stockte. Das Buch wurde ein Bestseller. Seitdem ist viel passiert. Die Finanz- und Wirtschaftskrise hat die Welt erschüttert. Ein Scheitern der europäischen Einigung ... continue reading

15. Februar 2011

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