Germany Moves to Rein In Future Borrowing

Constitution will be changed to ban excess borrowing: Merkel
By Ambreen Ali,  Newser User
Posted Jan 13, 2009 4:17 PM CST
The German chancellor unveiled a $65 billion stimulus package this week, but made it clear the government wants to repay the debt quickly.   (AP Photo/Michel Euler)
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(Newser) – As Berlin rolls out a record $65 billion stimulus package, it's also making excessive government borrowing a constitutional crime. The new amendment—which will limit the national deficit to .5% of GDP "in normal economic times"—is a sign of the government's discomfort with its new stimulus, which totals 1.5% of GDP. "This is an extraordinary situation and we must respond with extraordinary measures," Chancellor Angela Merkel tells the Financial Times.