Bundesbank backs German debt brake reform
Next chancellor could try to push reform through before new parliament is sworn in
Germany’s central bank has voiced its support for reforming the country’s self-imposed limits on government borrowing.
The Deutsche Bundesbank said in a statement on March 4 that its proposal aimed to strike a balance between its commitment to “sound public finances” and meeting the financing needs of the eurozone’s largest economy.
If the reform passes, Germany’s federal government may be able to borrow as much as 1.4% of GDP if the country’s debt-to-GDP ratio is below 60%. The cap would fall to
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