German policymakers have been pushing this proposal i.e. reinstating the ‚debt brake‘ for a while now and are spinning the inflation narrative to their favour. They are saying that the government needs to avoid spending that stokes inflation, namely long-term subsidies such as those for new homes or electric cars.It will be interesting to see how policymakers will try to balance all of that out as the economy is already starting to look like it is running into some troubling headwinds. Add to the fact that the inflation surge will stay for longer and energy prices in the region are burdening households considerably, it’s going to be a real challenge.