The German parliament approved the 2023 supplementary budget on Friday, temporarily lifting its self-imposed debt brake.
The budget passed with 392 votes in favor and 274 against in the lower house and unanimously in the upper house. The government justified the suspension of the debt brake, which usually restricts net borrowing to 0.35% of GDP, as a response to the emergency situation caused by the Ukraine war.
The budget includes an increase in borrowing by €44.8 billion, totaling €70.6 billion in new debt. This includes €43.2 billion for energy price subsidies and €1.6 billion for a 2021 flood relief fund. The news comes after the government struck a deal on the 2024 budget, reinstating debt limits.