Germany’s drastic policy shift in less than two days has left European Union officials and allies stunned. The country has abandoned its own constitutional limit on borrowing, which it helped draft, to rewrite the EU’s fiscal rules.
Brussels welcomed Germany’s initial move as a long-awaited response to years of urging the country to invest more, rather than being constrained by its borrowing cap. However, the second move was seen as an overcorrection that has unsettled even Germany’s closest allies.
Source: https://www.politico.eu/article/germany-budget-policy-eu-fiscal-rules-defense-spending-infrastructure