Frugality Gives Germany Cushion for Crisis With Balanced Budget

Germany is sticking to balanced budgets and ambitious debt targets despite slower revenue growth, creating an ever-larger fiscal cushion should an economic crisis hit.

Europe’s largest economy is projected to slash its public debt to 51% of gross domestic product by 2023 from over 75% only five years ago, according to budget projections, including the 2020 proposal, presented in Berlin on Wednesday. Debt this year will fall within the EU-established guideline of 60% of GDP for the first time in 17 years.