Extraordinary Statement of the Independent Advisory Board to the Stability Council

The Independent Advisory Board to the Stability Council (Unabhängiger Beirat des StabilitätsratsExternal link), of which Silke Übelmesser is a member,  published an Extraordinary Statement about the structural government budget deficit.

The main points of the statement are briefly outlined below.

• Because of the necessary adjustments of the federal budget planning following the ruling by the Federal Constitutional Court on November 15, 2023, the Stability Council did not review compliance with the upper limit for the general government deficit at its December meeting, contrary to legal requirements, and did not present any projections. For this reason, the independent advisory board did not prepare a detailed opinion.
• Based on the information available, the Independent Advisory Board assesses that Germany will comply with the European fiscal rules in the current year.
• The independent advisory board recommends reviewing the functioning of the Stability Council - also in view of the planned reform of the European fiscal rules. The debt brake as a national rule is an important part of ensuring compliance with European fiscal rules. Unlike compliance with European requirements, the German financial regulations do not provide for independent monitoring of compliance with the debt brake requirements.

See hereExternal link for the statement (in German).