Proponents of the current austerity measures argue that Germany must prioritize structural fiscal health to ensure the country's long-term economic resilience. After years of high spending, particularly during the pandemic and the subsequent energy crisis, the federal government is under pressure to return to the debt brake, a constitutional rule that limits structural deficits. Supporters contend that ignoring these limits would lead to unsustainable debt levels that would eventually require even more painful tax hikes or deeper cuts in the future.
From this viewpoint, the government is acting with necessary prudence. By reducing subsidies, the state is attempting to move away from a culture of dependency and toward a more market-driven economy. Supporters suggest that the Mittelstand is robust enough to adapt to these changes, and that the reallocation of funds toward essential infrastructure and digital transformation will ultimately benefit all businesses, including medium-sized ones, by creating a more efficient and stable economic environment.
Furthermore, advocates emphasize that the government cannot continue to subsidize every sector indefinitely. They argue that the current fiscal consolidation is a prerequisite for regaining investor confidence and maintaining Germany's credit rating. By demonstrating a commitment to balanced budgets, the government aims to keep interest rates manageable and provide a predictable framework for the private sector to operate within, even if the transition period requires significant belt-tightening across the board.