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March 29
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Germany wants European Union rules on member state debt to be applied more strictly, Reuters reported, citing government sources.

The rules should be more clearly defined, rather than setting unattainable goals that are open to interpretation, a government source in Berlin said. The aim is to reduce the deficit, which has skyrocketed during the coronavirus pandemic, as well as build up reserves to protect against future crises, the source said, adding: Debt cannot be the solution to all problems.

The German government is keen to take the lead in discussions about reforming EU debt rules, pointing to recommendations from the International Monetary Fund, the OECD and the European Commission to contain spending.

Existing EU rules limit new debt to 3% of output and total debt to 60%, but they remain suspended due to the pandemic.

German Finance Minister Christian Lindner said EU member states should in principle keep their annual structural deficit below 0.5% of output, or at least move towards that goal. 

The document, seen by Reuters, which summarizes Berlin's proposals, also highlights the importance of continued investment for growth and the climate, but says it makes it even more necessary to improve public finances.

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