German Finance Ministry Leaves Door Open to Lift Debt Brake

Germany’s Finance Ministry signaled it’s ready to consider suspending debt restrictions as an emergency step with Europe’s largest economy bracing for the impact of the war in Iran.

An option to lift the constitutionally anchored debt brake has been firmly rejected by Chancellor Friedrich Merz and his conservative Christian Democratic-led bloc. But the Finance Ministry, led by Social Democrat Lars Klingbeil, said it won’t rule out a suspension, which could be triggered in response to supply disruptions from the Middle East hitting Germany’s economy.