Could this fiscal mistake by German politicians lead to the downturn of the German economy? Michel Santi shares his insights.
German Chancellor Olaf Scholz
The debt brake has become an impossible equation to solve, forcing the country’s leaders to resort to all sorts of accounting tricks or maneuvers to bypass it. In short, this strict and non-negotiable control of public deficits is very bad news for Olaf Scholz and his government. After all, how on earth can a country manage, in the current economic climate, with the constraint of limiting its structural deficit to 0.
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