Germany's Stringent Fiscal Rules Up for Debate Ahead of Election.

Germany's strict borrowing rules, known as the debt brake, are under debate as the country heads towards a snap election. The current rules limit structural budget deficits to 0.35% of GDP, but there is growing pressure to reform them to allow for more flexibility in funding necessary investments in infrastructure, energy, and defense. Various proposals, such as linking borrowing limits to debt levels, creating special funds, implementing golden rules for certain spending, and granting more freedom to regional governments, are being considered to address Germany's investment needs while adhering to fiscal constraints. [Extracted from the article]