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Germany to Breach Debt Limits Once Again If Putin Shuts Off Gas

  • Coalition in silent debt agreement if Russia turns off gas tap
  • Finance chief fears more debt may worsen cost of living crisis
Vladimir Putin
Vladimir PutinPhotographer: Alexei Druzhinin/AFP/Getty Images

Germany is set to ditch its plan to return to strict borrowing limits next year if Russia stops natural gas deliveries to Europe’s largest economy for good, according to people familiar with the matter.

While Finance Minister Christian Lindner has argued that Germany and its euro zone peers must scale back public debt from 2023 to avoid the risk that more deficit spending could fuel historically high inflation, the governing consensus may be shifting.