Part 2/8:

The concept of the debt brake was introduced in 2009, catalyzed by the global financial crisis that saw Germany’s banks requiring a substantial bailout. Following the bailout, fears over soaring governmental debt prompted Chancellor Angela Merkel to assure the public of a more sustainable fiscal approach. Consequently, the debt brake was enshrined in Germany’s constitution, allowing the federal government to borrow a mere 0.35% of its GDP annually on average.