Will Germany take on new debt in any way, shape, or form in order to create the 2025 budget?
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The question will resolve yes if any form of debt (whether it‘s a Sondervermögen, Notlage, or anything else) is taken on in order to put up a national budget for 2025.
This question is managed and resolved by Manifold.
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The debt brake is enshrined in Articles 109 and 115 of the German Basic Law. It provides for a structural and a cyclical component. The structural component limits the Federal Government's ability to incur new debt to 0.35% of nominal gross domestic product per year.
I assume you talk about debt above what the debt brake (Schuldenbremse) allows? Otherwise it is a certain YES.
As a followup: The output gap calculation method (EU-CAM, Potenzialschätzung) could be adapted to allow for a lot more debt while adhering to the debt brake. How would that resolve?
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