Germany’s debt brake, introduced in 2009 during Angela Merkel’s chancellorship, is under scrutiny after a ruling from the Federal Constitutional Court deemed a 2021 supplementary budget unconstitutional. This has led to significant budgetary issues for 2023 and 2024, creating a potential budget gap for the next year and sparking debates about the future of fiscal discipline in Germany. The ruling coalition’s inability to reach a consensus on fiscal policy amidst urgent investment needs further complicates the situation as the country approaches early elections.