Tax & Spend
Bundesbank Says Germany Must Respect Constitutional Debt Brake
- Softening of fiscal rules via implementation not suitable
- German central bank comments on court ruling in monthly report
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The German government shouldn’t try to evade the debt brake by tapping loopholes, according to the Bundesbank.
“Fiscal rules shouldn’t be circumvented,” the central bank said in its monthly report published Monday. “A reform would require a majority to amend the constitution, and if the debt brake is seen as too restrictive, this would be the right way to go.”