Germany Averts Budget Crisis But Austerity Still Looms as Debt Brake Threatens Climate Goals
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Germany narrowly avoided a budget crisis by reaching a last-minute deal on a 2024 budget, but austerity measures are still likely.
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Germany's debt brake rule limits debt issuance and has been repeatedly circumvented, but remains politically popular.
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The deal cut €45 billion from the climate and transformation fund between 2024-2027, threatening climate goals.
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The debt brake makes it hard to finance ambitious climate action, creating a contradiction the court identified.
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Mainstream parties have the votes to reform the debt brake to enable climate action and should seize the moment.