The German government and the European Commission (EC) have reached an agreement on the country’s debt obligations until 2029.
According to Report, this was reported by the Handelsblatt newspaper, citing sources in the German government.
According to the publication, the German government ‘has successfully agreed with the European Commission on a multi-year plan for the maximum permissible growth’ of government spending for the period 2025-2029. The financial plan is expected to be adopted by the cabinet on Wednesday and then sent to the EC. In this case, the package of measures to increase military spending and develop infrastructure will be fundamentally compatible with EU rules, the newspaper notes. However, the possibility of applying the excessive deficit procedure to Germany as early as this autumn, when the 2026 budget is presented, cannot be ruled out, the newspaper points out.
The European Commission, as the publication emphasises, insists that the rules apply to everyone. However, economists believe that the debt agreement violates this principle. ‘Germany is distorting the application of EU rules to suit its own needs,’ says Jeroen Zettelmeier, director of the Brussels-based think tank Bruegel. In his opinion, this could have ‘catastrophic’ consequences.
https://report.az/ru/drugie-strany/pravitelstvo-frg-soglasovalo-s-ek-finansovyj-plan-do-2029-goda
