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Germany to ease government debt limits to boost economy and defence spending

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Friedrich Merz, Germany's soon-to-be chancellor, has announced a strategy to exempt defence spending from limits on government borrowing. View on euronews
Germany is set to relax its stringent government debt limits to enhance economic growth and increase defense spending, as reported by MSN. This decision comes in response to the need for increased military expenditure, particularly in light of the ongoing war in Ukraine and the broader geopolitical tensions with Russia. The German government, led by Finance Minister Christian Lindner, plans to adjust the debt brake rule, which caps the federal deficit at 0.35% of GDP, to allow for more fiscal flexibility. This move is part of a broader strategy to modernize the military, support economic recovery, and meet NATO's defense spending targets. The changes are expected to be implemented in the upcoming budget, reflecting a significant shift in Germany's fiscal policy traditionally known for its strict adherence to balanced budgets.

Read the Full MSN Article at:
[ https://www.msn.com/en-ph/politics/government/germany-to-ease-government-debt-limits-to-boost-economy-and-defence-spending/ar-AA1Ak3on ]