US NOV FLASH MANUF PMI 48.8 (FCST: 48.9); OCT 48.5

MNI:Largest Canada New Home Price Dip Since `09 Led By Toronto

CANADIAN OCT FLASH RETAIL SALES +0.7%, 4TH STRAIGHT INCREASE

MNI China Daily Summary: Friday, November 22

MNI: PBOC Net Drains CNY345.9 Bln via OMO Friday

MNI BRIEF: Fed Should Explore Central Clearing At SRF-Hammack

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: Gilt Syndi; IT, EU Due Monday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL NOV INDEX 71.8

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GERMANY: SPD Co-Leader: Merz Stance On Debt Brake 'Good Starting Point'

GERMANY
Homepagemarkets-real-timePolitical Risk BulletCEEMEAEurozoneGermanyBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

Speaking on a podcast for the Handelsblatt newspaper, centre-left Social Democratic Party (SPD) co-leader Lars Klingbeil has said that the stance of conservative Christian Democratic Union (CDU) leader Friedrich Merz towards potential debt brake reform is a 'good starting point'. Klingbeil sought to impress that there is even the potential for reform before the early federal election, likely to take place 23 February. Klingbeil: "We don't have to wait until there is a new government in April, May or June, when we don't even know whether we will have the necessary majorities in the Bundestag (lower house of parliament) with a two-thirds majority,"

  • There has been significant political and market focus on Merz's comments in recent days. On 13 Nov, Merz indicated that the debt brake could be reformed. He mentioned the 20 articles of the 'Basic Law' that cannot be altered but said "Everything else can of course be discussed," before caveating that any changes to the debt brake would only be to boost investment and growth, rather than increasing social spending.
  • Klingbeil's comments regarding reforming the debt brake pre-election are unlikely to come to fruition. Speaking earlier on 15 Nov, Merz said all policy discussions would have to wait until after the 16 Dec confidence vote in the minority gov't of Chancellor Olaf Scholz.
  • With the gov't expected to fall in the confidence vote, President Frank-Walter Steinmeier will then have 21 days to dissolve the Bundestag, almost certainly not enough time to wrangle a two-thirds agreement on reform to the debt brake. 
253 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Speaking on a podcast for the Handelsblatt newspaper, centre-left Social Democratic Party (SPD) co-leader Lars Klingbeil has said that the stance of conservative Christian Democratic Union (CDU) leader Friedrich Merz towards potential debt brake reform is a 'good starting point'. Klingbeil sought to impress that there is even the potential for reform before the early federal election, likely to take place 23 February. Klingbeil: "We don't have to wait until there is a new government in April, May or June, when we don't even know whether we will have the necessary majorities in the Bundestag (lower house of parliament) with a two-thirds majority,"

  • There has been significant political and market focus on Merz's comments in recent days. On 13 Nov, Merz indicated that the debt brake could be reformed. He mentioned the 20 articles of the 'Basic Law' that cannot be altered but said "Everything else can of course be discussed," before caveating that any changes to the debt brake would only be to boost investment and growth, rather than increasing social spending.
  • Klingbeil's comments regarding reforming the debt brake pre-election are unlikely to come to fruition. Speaking earlier on 15 Nov, Merz said all policy discussions would have to wait until after the 16 Dec confidence vote in the minority gov't of Chancellor Olaf Scholz.
  • With the gov't expected to fall in the confidence vote, President Frank-Walter Steinmeier will then have 21 days to dissolve the Bundestag, almost certainly not enough time to wrangle a two-thirds agreement on reform to the debt brake.