Only in exceptional circumstances can the debt brake be lifted and the government take on new debt. From 2014 to 2019, the federal government was able to comply with these conditions as the budget was always balanced. But then came the coronavirus pandemic and Russia's invasion of Ukraine. The Bundestag suspended the debt brake several times, and the government has been able to borrow billions.
The judges ruled that setting aside emergency loans for the future and spending them in ways not approved by the Bundestag is not permissible. The decision caught the coalition off guard, and now there has been widespread confusion about how to react to it. Especially since the KTF is not the only special fund.
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