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The origins of the debt break can be traced to a history of fiscal laxity. In the aftermath of the oil crisis in the 1970s, Germany's central government debt surged. The unification with East Germany in the '90s incurred hefty expenses, leading to further borrowing. By the early 2000s, deficits had escalated due to repeated overspending, contradicting the EU's fiscal regulations.
With the financial crisis in 2008 exacerbating these issues, the debt break emerged as a defensive measure against Germany’s fiscal excesses. It was both a restoration of fiscal discipline and a reaction to fears surrounding escalating national debt, contributing to a distinct divergence in Germany's fiscal health compared to its European counterparts.