Germany’s government is reportedly considering a supplementary budget for 2024, allowing for additional spending of up to EUR 11 billion while adhering to the country’s debt brake.
This plan will leverage the cyclical component of the debt brake, which permits extra borrowing during economic slowdowns.
Citing government sources, Bild, a German newspaper, reported that the Ministry of Finance briefed coalition budget politicians on this possibility. A government source confirmed the idea is being explored to Reuters, but a final decision hasn’t been made.
The need for additional funds will be required because of the slower than anticipated economic growth in 2024 compared to initial budget projections.
