In 2024, will the German parliament create an off-budget fund (Sondervermögen) to support the German economy?
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The German government is limited in how much debt it can take on due to a constitutionally enshrined debt brake. By changing the constitution, additional debt can be taken on, as has happened with Sondervermögen (Bundeswehr), a 100-billion Euro fund created after the onset of the Russia-Ukraine war. This is only possible with a 2/3 majority in the Bundesrat and Bundestag.

Recently, German economists and friends of mine have called for a similar off-budget fund to support the lagging German economy. This question will be resolved positively if the German ruling party collaborates with opposition parties to pass an off-budget fund of 10 billion Euros or more with the goal of supporting the German economy before the end of 2024. If the resolution ends up being ambiguous, I will consult a group of politically informed German friends for advice.

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