Monitoring compliance with the Germany’s debt brake

In accordance with § 5a of the Stability Council Act, from 2020 the Stability Council monitors compliance by the German Federation (Bund) and each individual federal states (Länder) with the debtor rule of Article 109 paragraph 3 of the Basic Law for the previous, current and following year.

The monitoring shall follow the requirements and procedures for compliance with budgetary discipline as contained in legislation based on the Treaty on the Functioning of the European Union. A uniform cyclical adjustment method shall be used as a basis.