Part 5/8:
The Case for Reforming the Debt Break
Several reasons illuminate why Germany's political elite is re-evaluating its steadfast adherence to the debt break:
Suspension Due to Crisis: The debt break was suspended for four years (2020-2023) during the pandemic and the geopolitical turmoil following Russia's invasion of Ukraine. The relative stability during this suspension has questioned the necessity of such strict limits.
Stagnant Economic Growth: With Germany's economic growth faltering, confidence among investors and consumers has waned. The country is potentially unable to manage austerity in the face of current socio-economic challenges.