Germany has taken a historic step by amending its constitutional debt brake, enabling a massive €1 trillion investment in defence and infrastructure. This policy shift, discussed in depth during a session at the Raisina Dialogue in New Delhi, is a result of changing priorities of the European nation’s allies.
The session, held as part of Firstpost’s Ideas Pod series on Day 3 of the dialogue, featured Adrian Haack, director of the Konrad Adenauer Stiftung (KAS) office in India, and Bastian Schneider, Judge at the Karlsruhe Administrative Court in Germany. The discussion was moderated by Prathik S Vinod, associate producer at Firstpost.
This strategic shift in its debt ceiling marks a departure from Germany’s long-standing fiscal conservatism, aiming to bolster national security and stimulate economic growth.
Historically, Germany has adhered to a stringent “debt brake” (Schuldenbremse) enshrined in its Basic Law, limiting the federal deficit to 0.35 per cent of GDP. This policy was implemented to maintain fiscal discipline and prevent excessive national debt.
Content retrieved from: https://www.firstpost.com/world/raisina-dialogue-2025-germany-debt-brake-reform-defence-infrastructure-investment-europe-13872767.html.
