German Fin Min Schaeuble presented plan that would allow Federal States take on some new debt after the debt ceiling agreement kick in in 2020 - financial press
- Offer to pass part of the debt leeway teh Federal govt has on Federal States
- Currently the govt can take on new debt amounting to 0.35% of GDP
- Schaeuble plans to keep 0.2% for Federal govt and allow the States to control 0.15%
- In return Schaeuble want to tighten snactioning mechanism and voting rules regarding financial discipline of States