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German Coalition Open to Looser Short-Term EU Budget Rules

  • Indebted states would have to agree to stricter mid-term goals
  • Commission expected to publish proposed rule changes this fall
Updated on

Germany’s ruling coalition is open to changes to European Union budget rules which would give highly-indebted member states more leeway in the short term but mean stricter medium-term goals.

The three parties in Chancellor Olaf Scholz’s governing alliance agreed that Germany would support watering down a requirement for annual debt reduction if mid-term budget objectives were made more binding, according to a document seen by Bloomberg.