- Michael Hüther und Jens Südekum auf VOX ·
- Contribution ·
- 7 May 2019
The German debt brake needs a reform
Borne by a broad political majority, the debt brake was introduced into the German constitution in 2009. At that time Germany was under the acute shock of the financial crisis. The massive stimulus packages needed to support the economy had pushed the debt ratio up from 63% to 81% of GDP in just a few years. The purpose of the debt brake was to reverse this trend.