Berlin, – Germany’s Bundestag lower house of parliament on Friday approved another suspension of the country’s debt break against the backdrop of a planned subsidy package to offset soaring energy prices.
Friday’s decision by lawmakers which was only possible under Germany’s Basic Law in emergency situations enables the German government to take out additional loans amounting to 200 billion euros ($195 billion).
The debt brake stipulates that Germany’s federal budget should manage without major borrowing except when there are adverse economic conditions.
Since the beginning of the coronavirus pandemic in 2019, the Bundestag has repeatedly suspended the debt brake to pave the way for large loans.
At first, the state borrowed money to aid companies and households struggling with the pandemic.
More recently, Germany has been borrowing money to offset soaring energy prices and high inflation. (dpa/NAN)