German debt reform reverses more than a decade of limited borrowing

The World

On Friday, Germany’s Legislature approved debt reforms in hopes that it will give its sluggish economy a shot in the arm. It’s a reversal of nearly two decades of restrictive borrowing policy known as the Schuldenbremse, or “debt brake,” which limited the government’s annual borrowing to an amount equal to 0.35% of the country’s GDP. The World’s Carol Hills spoke to Shahin Vallée, who called the reform historic.

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