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#DebtBrake
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Opinion pieces are fun to write because there is low-threshold of knowing if they become published or not. This is what I wrote about the #debtbrake #velkajarru last year bsky.app/profile/vall...

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Comparing tax regimes can be understood in many ways.

One is the soft shaping of economic thought and perhaps ultimately more about justifying the fiscal squeeze.

Less about a regrettable necessity, more of necessary instrument to lock in a social order where capital is out of reach.

#DebtBrake

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Without a real change in economic policy, there is no reason to expect a recovery any time soon. Govt must overcome its debt shadow and, on the basis of a genuine macroeconomic analysis, recognize that regulations such as #German #DebtBrake, and even the modified debt brake, are not viable.

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Industry are calling for urgent reform

#DebtBrake #Merz

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#DebtBrake - good effing riddance!
(not #saving, but spending fosters economic growth)
#Germany’s fiscal shift recovers #euro area – behold 10y Govt bond yield #spreads - chart @financialtimes.com FT www.ft.com/content/3cd9...

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#Germany’s defence spending is projected to rise sharply, reaching 3.4% of GDP by 2029. This increase is facilitated by the exclusion of defence #spending exceeding 1% of GDP from #debtbrake deficit - chart #GoldmanSachs

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Underlining the #normalisation in the market, German official pointed to #German bond yields moving above interest rate swaps of the same duration, which happened for the first time last year as expectations mounted over #debtbrake reform.

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In addition, a key concern has been that the #debtbrake inhibits vital public investment by disallowing deficit-financed spending, even when borrowing costs are low and infrastructure needs are high.

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#Germany’s #DebtBrake
A rich body of both theoretical and empirical research suggests that strict balanced-budget #constraints can produce significant macroeconomic costs, including real and nom instability, chart #RichmondFed www.richmondfed.org/publications...

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Instead of the one-sided approach of the Merz Govt, #Germany should be embarking on a real and balanced reform of the #debtbrake and European #fiscal rules.

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How #austerity constrained #Germany’s growth via #DebtBrake - chart @MorganStanley

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What capabilities does Europe need to develop? What are the consequences of the German #debtbrake reform? Is a defence single market possible? Interview with Guntram Wolff, Senior Fellow at Bruegel. 🎧📖 Listen or read the episode here: bit.ly/42lcS9d

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Thanks for the thread. The so-called ‘debt brake’ had been introduced by his own party… now he has led his party through a rapid 180-degree turn.”
From fiscal hawks to defense hawks. #Germany #debtbrake #Bundeswehr

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Good morning, Europe! ☀️

Wishing everyone a bright and productive day.

Like I promised, I will be releasing a 🧵 about the #German #debtbrake reform today.
This will be part one of three. So leave a follow if you're interested in this stuff and want to learn more!

#GoodMorningEurope

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🇩🇪 Debt Brake Amendment Passed
Bundesrat approved spending bill (53 vs. 46 required votes), triggering higher debt/interest. But:

2024 interest/revenue: 1.6% (Scope: vs FR 4%, UK 5.7%, US 13.2%)

2029 forecast: 3.7% (↑ to 4.4% if yields +1%)
#DebtBrake #InterestCosts

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🇩🇪 Debt Brake Amendment Passed
Bundesrat approved spending bill (53 vs. 46 required votes), triggering higher debt/interest. But:

2024 interest/revenue: 1.6% (Scope: vs FR 4%, UK 5.7%, US 13.2%)

2029 forecast: 3.7% (↑ to 4.4% if yields +1%)
#DebtBrake #InterestCosts

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Sixt's latest ad mocks Merz for approving 500B€ in new debt, despite campaigning against it.

They even compare it to renting a BMW X3 for €69 a day—without "special funds" 😂

#PoliticalSatire #DebtBrake

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Breaking: German Bundestag votes to change the constitution allowing €1 trillion in national debt to be spent on defence and infrastructure projects #trump #Germany #debtbrake #EU #defence #Ukraine #Russia

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#Germany's #Bundestag has just approved an exemption of #defence spending from the Debt Break. The changes passed with 513 votes in favour, above the 489 needed for a two-thirds majority.

#EUpol

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No-No-No --- Auf Nimmerwiedersehen
fricking #DebtBrake – Beat it! -
chart @bloomberg.com TV live

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Germany set to vote on historic increase in defence spending German MPs could pave the way for huge investments to defend Europe against a threatening Russia.

The German parliament is about to vote on a change of its basic law. What this means for defence support for Ukraine:
bbc.com/news/article...
#Ukraine #Germany #debtbrake

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#Germany today: #Bundestag is due to vote on a massive package of fiscal stimulus that will revoke the constitutional #debtbrake on how much debt the Govt can take on, chart @DavideOneglia @TS_Lombard via @johnauthers.bsky.social

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( anti-fascist economic policy @isabellamweber.bsky.social )
#Germany’s #debtbrake (self-imposed fiscal straitjacket) grew out of neoliberal distrust of Govt – obviously, deeply anti-democratic Katharina Pistor @projectsyndicate.bsky.social www.project-syndicate.org/commentary/g...

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Agreement on multi-billion spending package The Union, SPD and Greens have all backed a major funding package for defence and infrastructure. The Bundestag will vote on the package on Tuesday.

🤝 After long discussions, the leaders of the CDU/CSU, SPD and Green factions have agreed on a major financial package for defence and infrastructure. To this end, the #debtbrake will be softened.

More on this:

#NewsDE

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#Germany - How did this regulatory chaos come about? SchuldenFrickingBremse:
Why waste so much time trying to slow growth?! Already, abolish the outlandish #debtbrake"! A radical neo-mercantilist, "degrowth"-leaning toxic cosplay! -- chart @DezernatZ
mailchi.mp/dezernatzuku...

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Breaking news from #Germany on an agreement between the new coalition & the Greens on #debtbrake reform is welcome.
It is it is far from ideal politically (using the old Bundestag majority) and economically (no cap for defence but for infrastructure).
But perfect sd not be the enemy of the good.
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Military-Keynesianism is damaging the #climate transition - It's a success that the #debtbrake is being relaxed. But massive #defense spending is damaging the climate transition, chart @isabellamweber.bsky.social @surplusmagazin.bsky.social
www.surplusmagazin.de/militarkeyne...

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(100% agree) Heiner Flassbeck: Instead of inscribing even more complicated new #debt rules in #German constitution, why not lift the #DebtBrake in general?
www.relevante-oekonomik.com/2025/03/10/s...

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Sondervermögen von Union und SPD ein "Mogelpaket"? Ökonom Moritz Schularick hat den Sondierern von SPD und Union einen großen Finanzplan empfohlen. Mit dessen Umsetzung ist er aber unzufrieden.

The economist Moritz Schularick supports the relaxation of the Schuldenbremse (debt brake) when defense spending exceeds 1% of GDP, considering it a "basically meaningful provision." #Germany #FederalParliament #SpecialFunds #DebtBrake

www.zdf.de/nachrichten/...

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#Debtbrake #Schuldenbremse

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