German coalition eyes return to debt limits from 2023, open to EU reforms

BERLIN, Nov 24 (Reuters) - The three parties set to form Germany's next government want to increase public investment in green technology and digitalisation while returning to strict debt limits from 2023 onwards, according to a coalition deal seen by Reuters on Wednesday.

The centre-left Social Democrats (SPD), the Greens and Free Democrats also agreed to strengthen the European Union's economic and monetary union and signaled an openness to reform the bloc's fiscal rules, also known as the Stability and Growth Pact.

"The Stability and Growth Pact (SGP) has shown its flexibility. On this basis, we want to ensure growth, maintain debt sustainability and ensure sustainable and climate-friendly investments," the coalition agreement said.

"The further development of the fiscal policy rules should be based on these goals in order to strengthen their effectiveness in the face of the challenges of the time. The SGP should become simpler and more transparent, also in order to strengthen its enforcement," the document read.
Reporting by Michael Nienaber, editing by Emma Thomasson

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