1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites
In focus
ChristmasSyriaGerman election 2025
Latest audioLatest videos
Live TV

Slamming on the brakes

May 29, 2009

Germany edges closer to agreeing a law that would make it illegal for its states to incur new debt after 2020. It would also place a strict ceiling on the national debt.

https://p.dw.com/p/HzyS
Germany hopes to put a stop to the cash drainImage: DWMontage

The German lower house of parliament, the Bundestag, has decided to put the brakes on the country's spiralling debt by agreeing to introduce a reform that would prohibit all of the country's 16 states from incurring new debt from 2020 and restricting the country as a whole to debt no higher than 0.35 per cent of its gross domestic product.

The motion was approved with a two-thirds majority, passing through the Bundestag with 418 of the 575 deputies voting in favor while109 voted against and 48 abstained.

The law must still pass through the Bundesrat, the upper house of parliament, also with a two-thirds majority. The new debt restrictions would replace the current regulations, which have failed to prevent an increase in the national debt to more than 1.5 trillion euros ($2.1 trillion) over the past 40 years.

nda/AP/dpa/AFP

Editor: Chuck Penfold

Skip next section Explore more

Explore more

Bundestag decides to put brakes on spiralling debt (29.05.2009)

With the German government being pressured to bail out companies in the auto and retail sectors at a time of falling tax revenues - the lower house of parliament, the Bundestag, has decided to put the brakes on spiralling debt. It's agreed to introduce a reform that would prohibit all of the country's states from incurring new debt from 20-20 onwards and would also restrict the country as a whole to debt no higher than point -35 per cent of its gross domestic product. The motion was approved with a two-thirds majority. +++MAZ+++
May 29, 2009
small growing plant

Germany Passes Stimulus Plan Despite Wary Public

Germany Passes Stimulus Plan Despite Wary Public

Germany's lower house of parliament, the Bundestag, has approved a 50-billion-euro ($64 billion) stimulus package aimed at lifting the country out of its worst postwar recession. (13.02.2009)
February 13, 2009
A file photo of cranes at Berlin's Potsdamer Platz in August 1997

Germany Cabinet Approves Rescue Package to Lift Economy

Germany Cabinet Approves Rescue Package to Lift Economy

Chancellor Angela Merkel's government agreed to implement a second economic stimulus package on Tuesday, Jan. 27. The program calls 50 billion euros ($66 billion) worth of investments, aid to businesses and tax breaks. (27.01.2009)
January 27, 2009
Show more stories