German Leaders Call for Overhaul of Debt Brake at Davos

Bundesbank President and Finance Minister highlight need for structural reforms and increased investments to address economic challenges.

Bundesbank President Joachim Nagel advocates for a complete restructuring of Germany's debt brake, emphasizing the need for more flexibility to support investments.
Nagel argues that the current framework, while effective in the past, is inadequate for addressing 'tectonic changes' in the global economy.
German Finance Minister Jörg Kukies supports targeted reforms to the debt brake but stresses that structural economic issues extend beyond fiscal policy alone.
Both leaders highlight the importance of stimulating growth and tackling structural weaknesses in Germany's economy through increased investment in infrastructure and innovation.
The proposed reforms aim to balance fiscal responsibility with the flexibility needed to address Germany's slowing growth and long-term economic challenges.