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German MPs tear up fiscal rule book, pass huge coronavirus aid budget

BERLIN: German lawmakers approved on Wednesday an emergency budget financing a coronavirus aid package that foresees 156 billion euros (167 billion dollars) in new debt, in a historic move that flouts the country’s long-held fiscal rules.
The record debt covers 122.8 billion euros in aid for businesses and health services. It also takes into consideration an expected drop of around 33.5 billion euros in tax revenues as the pandemic takes its toll on Europe’s largest economy.
In order to allow the spending plans, lawmakers also voted to suspend Germany’s so-called debt brake, anchored in the constitution, which limits structural net borrowing to 0.35 per cent of gross domestic product. (DPA)