Constitutional debt brake loosened

Constitutional debt brake loosened

Slovenia's parliament has endorsed legislation that loosens the constitutionally-imposed debt brake following last year's overhaul of fiscal rules at EU level. Under the recently revised EU fiscal rules, fiscal policy should focus on the medium-term path and core expenditure, rather than multi-year goals that can easily be affected by data revisions, forecast changes, and one-off expenditure. The amended Fiscal Rule Act thus changes the way the …

SPD and CDU have promised to ease the debt brake for the countries as well. For this, the Lower Saxony constitution was changed by the Bundestag and the Bundesrat. But in Hanover, one is divided: May Berlin be so simple?