Four days to go!

Is it time to lift the debt brake?

Dear Reader,

It is the phantom stalking through every attempt by the government to explain itself to disenchanted voters.

The failure to integrate migrants into the school system and housing market? “We would do more, but…”

Bringing transport infrastructure back up to scratch? “We would do more, but…”

Increasing defence spending to 2.5% of GDP or more? “We would do more, but…”

Bringing energy costs down? “We would do more, but…”

That unspoken ‘but’ is the debt brake, which sets a limit on the deficit (borrowing as a percentage of GDP) the government is allowed to run in any given year.

Few financial instruments can have ever set pulses racing like the German Schuldenbremse.