Institutions: Germany's debt brake will face the risk of failure

On March 6, according to Jin Shi Data, Beat Thoma, Chief Information Officer of Fisch Asset Management, stated in a report that Germany’s debt brake on net borrowing restrictions will become “effectively meaningless.” Future coalition partners in Germany plan to establish a 500 billion euro special fund over the next 10 years to promote infrastructure construction. In addition, debt financing for defense spending (exceeding 1% of GDP) is not subject to the debt brake restrictions. Thoma stated, “Overall, the economy may benefit significantly in the medium term.”