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The Independent UK
The Independent UK
National
David McHugh

Germany to ease government debt limits in major step aimed at boosting economy, defense spending

Germany Economy Debt Limit Loosened - ((c) Copyright 2025, dpa (www.dpa.de). Alle Rechte vorbehalten)

The two political parties expected to form the next German government have agreed to loosen the country's constitution restrictions on borrowing, enabling 1 trillion euros ($1.08 trillion) or more in spending on defense and infrastructure.

It’s a major change in Germany’s debt-averse political culture. Intensifying debate over the debt brake throws into question the economic wisdom that has dominated Europe’s biggest economy and one of the world’s wealthiest countries - but more recently has been bogged down, fueling calls for reform.

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