Tax & Spend
Germany’s Merkel Voices Support for Reform of Debt Brake Policy
- Former chancellor says change needed to help defense spending
- Fiscal rule reform also backed by regional leader Soeder
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Former German Chancellor Angela Merkel and Bavaria’s prime minister, Markus Soeder, said they’re open to reforming the country’s strict borrowing limits, signaling a departure from the traditional stance of the conservative Christian Democrats, who are leading in polls ahead of an election in February.
Merkel said there’s a case for limited relaxation, arguing that Germany needs to increase defense spending and invest in areas where it lags behind to maintain social peace.