Any other country that had run a budget surplus for the last five years and was now facing a recession would have a clear response. Indeed, the pressure on policymakers to open the spigots would prove irresistible.
But Germany is not like any other country.
Despite entering a downturn the eurozone’s biggest economy is still — officially at least — clinging to its mantra of schwarze Null, or “black zero”, its commitment to a balanced budget. Under Angela Merkel, the policy has come to resemble an article of faith, the closest thing there is to a national ideology.
Yet with much of Europe teetering on the brink of recession, there are growing calls for Germany to put its orthodoxy aside and stimulate its economy by borrowing and increasing spending.
Read the full article on the Financial Times
