The head of Germany’s Bundesbank has called on Berlin to soften its tough spending rules, warning that Europe’s largest economy faced a “complicated” and “weak” outlook.
Germans are set to head to the polls in February, with the post-pandemic stagnation of Europe’s largest economy feeding into widespread voter discontent with Chancellor Olaf Scholz’s ruling coalition.
Bundesbank president Joachim Nagel told the Financial Times the next government needed to reform its so-called debt brake, which bans Berlin from borrowing more than 0.35 per cent of GDP in any fiscal year, to address the longer-term economic risks facing Germany.
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