Brussels / Berlin In the middle of the exploratory talks in Berlin to form a traffic light coalition, the International Monetary Fund is calling for a flexible approach to debt rules in Germany and Europe. “A premature austerity policy” would “damage the economic recovery,” said IMF chief economist Gita Gopinath in an interview with the Handelsblatt.
Germany should therefore apply the debt brake flexibly. “Investments in green technologies and digitization are essential to create sustainable growth,” said Gopinath. “If higher investments are necessary, Germany should make an exception to the debt brake.”
It is also important to show flexibility at the EU level. The EU must adapt the Stability and Growth Pact to a changed macroeconomic reality, demanded Gopinath. “Reform is needed,” she said.
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