But Joseph Stiglitz, winner of the Nobel Prize for economics, recently said in this publication that the rules are too strict and that austerity kills growth… In economics, as in politics, it’s all a matter of degree. Today, the euro area as a whole has a balanced approach to fiscal policy, and fiscal adjustment, which was necessary, is no longer hampering growth.
In my opinion, in order to effectively avert the danger of derailing local authority finances, it would be worth thinking about setting municipal cash advances, as a matter of policy, against the scope of the respective federal state as part of the debt brake, and stipulating that, from now on, cash advances can only be taken from a federal state.