Part 2/8:
The "debt break" restricts the federal government to a structural budget deficit of just 0.35% of GDP, essentially forbidding Germany's states from accruing any debt. While there are provisions for special funds and the ability to suspend the break during extraordinary situations, the intent is clear: Germany must maintain fiscal prudence in standard times. This constitutional amendment, passed with a two-thirds majority, was meant to counteract the excessive borrowing that had plagued the country in previous decades, especially in response to economic crises.