FRANKFURT (MNI) – Germany will push other Eurozone countries to
adopt laws requiring that budgets be at or near balance, the Financial
Times reported Monday, citing a government source.
Something similar to Germany’s “debt brake” law, which requires
that the federal budget deficit be no more than 0.35% of GDP by 2016,
“would be a good idea for other countries to have — although it might
take on different shapes and forms for each member of the Eurozone,” the
source told the paper.
The law has been a part of Germany’s constitution since last year.
The idea of a debt-limit law at the European level also received
support from Austria’s Finance Minister, Josef Proell. He told Germany’s
Die Welt that “considering the high debt in Europe, I am in favor of a
European debt-brake law.”
“This would lead to a clear cap on new debt, to stricter budget
discipline, and ultimately to balanced budgets in Europe,” he explained.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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