The German government is considering temporarily removing the constitutional mechanism that limits the country's debt levels, reports Bloomberg news agency on Wednesday based on an anonymous source.
In the plan, debts from local governments are transferred to the federal government. This gives local authorities more room to invest in projects.
The measure could count on applause in Europe. Among others, the President of the European Central Bank, Christine Lagarde, previously criticized the German government's policy of not spending.
Economic growth in Europe has declined in the past year and policymakers expect growth to decline further this year. That is why support must come from governments. Germany, the largest economy in Europe, still has a lot of room to increase spending compared to other governments.