Published by Global Banking & Finance Review®
Posted on February 24, 2025
1 min readLast updated: February 27, 2026
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Germany's debt brake reform will be discussed in coalition talks, with Chancellor Scholz emphasizing caution. AfD and Left Party hold enough seats to block changes.
BERLIN (Reuters) - A reform of Germany's constitutionally enshrined debt brake, which limits public borrowing, would be discussed by the leaders of the conservatives and the centre-left Social Democrats (SPD) in coalition talks, Chancellor Olaf Scholz said on Monday.
"All sorts of things need to be discussed in this context, with the utmost caution of course," Scholz said at a joint press conference with the leaders of his SPD party.
Scholz added it would be rare for the outgoing parliament to convene again but it would not be the first time.
The far-right Alternative for Germany (AfD) and the Left Party jointly secured one third of seats in the new German lower house of parliament in elections on Sunday, enough to block a loosening of the debt brake, a mechanism some investors and political parties say stymies economic growth.
In the outgoing parliament, major moderate parties would have enough seats to trigger a constitutional reform, which requires at least two thirds of the votes.
(Reporting by Andreas Rinke and Thomas Seythal,; Editing by Ludwig Burger)
The main topic is the discussion of reforming Germany's debt brake in coalition talks led by Chancellor Olaf Scholz.
The debt brake limits public borrowing, and changes to it could impact economic growth and fiscal policy.
Key players include Chancellor Olaf Scholz, the SPD, the conservatives, AfD, and the Left Party.
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