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Release of Debt Brake May Revitalize Germany's Economy

share-iconPublished: Monday, December 30 share-iconUpdated: Monday, December 30 comment-icon3 months ago
News sources:
REUTERS
Release of Debt Brake May Revitalize Germany's Economy

Credited from: REUTERS

  • Friedrich Merz, leader of the CDU, is likely to head Germany's government following the February elections.
  • The country's economy has been stagnant after a prolonged recession, leading to calls for **significant fiscal reforms**.
  • Merz proposes to **loosen the “debt brake”**, a constitutional measure restricting budget deficits to 0.35% of GDP.
  • Amending the debt brake could allow for increased **public investment** and address issues like deteriorating infrastructure.
  • Merz aims for a **Grand Coalition** with Scholz's Social Democrats, but constitutional changes will require a two-thirds majority.

For more details, visit the original article at Reuters.

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