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Debate Intensifies Over Reforming Germany’s Debt Brake

The debate surrounding Germany’s controversial ‘debt brake’ has gained momentum, following CDU leader Friedrich Merz’s indication of potential openness to reform. SPD Chair Saskia Esken has proposed discussing changes before the end of the legislative term, emphasizing the need for investment rather than increased consumption. While SPD and Greens advocate for flexibility in the debt rules to stimulate economic growth, the FDP maintains its stance against alterations. Critics argue that the current framework hampers essential investments in infrastructure and sustainability, highlighting a growing divide within the coalition.

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