MACRO PICTURE

Germany’s Fiscal Package: Growth Impact, Debt Rule Changes, and Policy Shift

By Nato Balavadze

25 March 2025

In this paper we discuss:

• The constitutional reform that changes the "debt break" rule;
• The EUR 500bn investment plan for infrastructure improvement;
• The political cohesion and opposition to the reform;
• The impact of the reform on Germany’s growth potential and on EZ growth; and
• The market impact of this reform.

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Download PDF: Germany - March 2025

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