German balanced budget amendment

Germany's balanced budget amendment, also referred to as the debt brake (German: Schuldenbremse), is a fiscal rule enacted in 2009. The law, which is in Article 109, paragraph 3 and Article 115 of the Basic Law, Germany's constitution, is designed to restrict structural budget deficits at the federal level and limit the issuance of government debt. The rule restricts annual structural deficits to 0.35% of GDP.^[1]

The debt brake is controversial among economists. It is supported by a German strand of economics, ordoliberalism, while other economists have challenged the rule.^[2][3]