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IPFS News Link • Germany

Germany To Suspend 'Debt Brake' On Monday, Clearing Way For Covid-19 Spending Spree

•, by Tyler Durden

As German's industrial auto giants shutter production at their domestic factories as the number of confirmed cases in Deutscheland climbs into 5-digit territory, domestic newsmagazine Handelsblatt revived reports about a coming suspension of Germany's constitutional 'debt break', which would allow Europe's largest economy to deliver its first major fiscal boost to the economy since 2013, when Europe was reeling from the aftermath of the periphery debt crisis.

That Angela Merkel is planning to invoke a 'crisis' clause in the debt-brake provision is hardly a surprise. Both Merkel and her finance minister, Olaf Scholz, have warned that if Berlin dithers, the economic fallout for Europe could be almost unimaginably brutal.

Like many other European officials, Merkel has promised to do "whatever it takes" to fight the virus.