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Crisis Gives Germany Sense of Vindication for ‘Black Zero’

  • IMF, ECB, Trump officials have long called for German spending
  • Germany’s fiscal space is ‘good for all,’ Wieland says
Updated on

Now that Germany is deploying its financial firepower to fight the coronavirus crisis, convincing the country that it was wrong to shun budget deficits for many years just got even harder.

The government of Europe’s biggest economy has long faced calls by officials from the International Monetary Fund and the European Central Bank, to the U.S. administration of Donald Trump, that it should spend and borrow more. Its finance ministers, backed by voters, insisted that balanced budgets and low debt were prudent policies storing up ammunition for a crisis.