Berlin vote heralds big spending cuts

The next German government after the federal election in September 2009 is almost certain to crack down on spending and drastically raise taxes after the Bundestag adopted on the 29 May 2009 measures that come close to banning budget deficits beyond 2016.

The controversial constitutional amendment, part of a reform of federal institutions, will prohibit Germany’s 16 regional governments from running fiscal deficits and limit the structural deficit of the federal government to 0.35% of gross domestic product.

Deutsche Welle, 29.5.09: Germany to restrict new debt from 2020 http://www.dw-world.de/dw/article/0,,4289808,00.html

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