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Gregor Laudage @gregorlaudage.bsky.social · 02/12/2024

2/Bringing together law&political economy, we map Germany's fiscal ecosystem. We place each entity on a coordinate system and depict its proximity or distance to the core budget based on its legal status and revenue model, as well as the characteristics of the debt it has issued.

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Gregor Laudage @gregorlaudage.bsky.social · 02/12/2024

3/Why are we doing this? Since the German Constitutional Court decided to tighten the constitutional debt brake in 2023, there has been a debate about the fiscal activities of the federal and state governments beyond the core budget and their compliance with the debt rules.

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Gregor Laudage @gregorlaudage.bsky.social · 02/12/2024

4/The PE literature refers to this phenomenon as OBFA. However, there is no genuine definition of what constitutes an OBFA. Meanwhile, the legal literature struggles with the scope of the German debt brake, as the rule formally applies only to the legal entities Bund/Länder.

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