Debt Brake

Debt Brake

The so-called “debt brake” is a constitutional amendment requiring the Federal Government and the 16 German states or Länder to balance their budgets. From 2020, state governments will not be allowed to take out further loans. Since 2016, the Federal Government has been allowed to borrow a maximum of 0.35 percent of gross domestic product under normal economic conditions.

Tobias Hentze

Tobias Hentze

Senior Economist for Financial Policy and Tax Policy

Tel+49 221 4981-748

Mailhentze@iwkoeln.de

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