Germany Fiscal Watchdog Warns Spending Risks EU Debt Breach

Germany’s fiscal watchdog warned the government risks breaching European Union debt rules and undermining long-term fiscal sustainability if its current spending push continues.

“Over the medium term, EU requirements will no longer be met under the national budget rules, and a sustainable development of the debt ratio is no longer assured,” Thiess Buettner, chairman of Germany’s Stability Council, said Monday in Berlin. He added that reform of the current debt rules — especially exemptions for defense spending — was necessary.