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Europe Live Thursday 23rd May 2013

Speeding up austerity as of 2013 in order to respect the golden rule

26th March 2012

On 21st March the federal government adopted the draft 2012 budget that had been amended to integrate that fact that the contribution made by Berlin to the European aid mechanisms this year was higher than previously planned. German Finance Minister, Wolfgang Schaüble announced that Germany will respect - as of 2014 and two years ahead of time- the debt limit that has been part of fundamental law since 2009. This "golden rule" that is now part of the new European pact sets a limit of 0.35% of the GDP on the federal structural deficit.

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