German Government Collapse: Debt Brake

This is a Germany news story, published by CNBC, that relates primarily to Berenberg news.

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major debt brake reforms

CNBC

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A long-standing debt rule helped collapse Germany's government. Now the policy is ripe for reform

Summary

Nutrition label

84% Informative

Germany 's government collapsed earlier this month after clashes within the former ruling coalition about economic and budget policy were widely cited as a key factor.

The debt brake, a fiscal rule that limits how much debt the government can take on, dictates the size of the federal government's structural budget deficit.

Tensions about fiscal policy had long been brewing, heightened by ongoing concerns about the state of the country's economy.

Polls suggest that the Christian democratic party will secure the biggest vote share and deliver the next chancellor.

Berenberg 's Schmieding said that if elected, the CDU will likely enter a coalition and strike a deal with a center-left party such as the SPD or Green party.

ING's Brzeski also expects the debt brake to soften, but pointed out that structural changes to the law will require a two-thirds majority in parliament.

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Neutral language

Article tone

formal

Language

English

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not offensive

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not hateful