Germany’s constitutional court blew a 17 billion euro hole into the country’s national budget a month ago, triggering a fiscal crisis and nearly collapsing the government. The court ruled that the government’s accounting was unconstitutional under the country’s debt brake system, which limits the amount of money the government can spend and the types of debt it can take on. Suddenly, the government was forced to decide which of its various promises it was going to break—whether it would raise taxes or go back on its climate pledges. In a series of late-night negotiations, it decided to do both. But that decision also put focus on the question of why Germany has a debt brake at all.

QOSHE - How a Court Ruling Triggered a German Budget Crisis - Cameron Abadi, Adam Tooze
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How a Court Ruling Triggered a German Budget Crisis

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18.12.2023

Germany’s constitutional court blew a 17 billion euro hole into the country’s national budget a month ago, triggering a fiscal crisis and nearly collapsing the government.........

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