MPs accept government’s “fiscal constitution” for debate

The lower house of Parliament on Wednesday voted to accept the government’s proposed fiscal legislation for further debate. The so-called “fiscal constitution” introduces a limit for the country’s public debt; it also requires the government to come up with ways of curbing spending if the debt exceeds 40 percent of GDP. In case the public debt reaches 48 percent of GDP, the government would be legally bound to cut at least 3 percent of its spending. The opposition has called for changes to the draft legislation which they say would narrow the manoeuvring space for any future government regardless of the economic cycle.

Author: Jan Richter