In 2023, the German government plans to lift a debt record, while restoring its constitutional rule of the debt brake, suspended for three years.
An apparent contradiction between these two objectives made possible by a dose of creativity in the management of public finances.
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The federal government clarified this week that it intended to issue some 539 billion euros in debt next year, against 449 billion this year.
This is more than the previous record set in 2021 to deal with Covid.
Loans burdened by the rate of ten-year German sovereign bonds, which exceeded 2% on Friday, the highest in a decade.
"Big gap"
However, the Minister of Finance, Christian Lindner, confirmed the return of the "debt brake" rule (
Schuldenbremse
), which has been enshrined in the Constitution since 2009. Suspended for three years in favor of the pandemic, this rule establishes balanced budgets by limiting debt to 0.35% of GDP…
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