...Debt Brake Ahead: From 2020, Germany (AAA/Stable/F1+) and the German Laender will be required to run their budgets without taking on new debt. Facing the debt brake, both Germany and the Laender have introduced far-reaching cost consolidation measures to reduce their large overall net funding deficits and to achieve a soft landing while continuing to perform their core public responsibilities and, in particular, to maintain their large infrastructural needs. Economic Progress: According to official statistics, Germany recorded unexpectedly high GDP growth of 0.7% in 4Q14 and 1.6% in 2014. For 2015, Fitch Ratings expects German GDP to grow by just 1%. This growth will be driven by strong private consumption, lower oil prices and increasing German exports, supported by the depreciation of the euro against the US dollar. This should help to maintain the sound development of taxes and to curb revenue growth in line with that of expenditure linked to the Laender's cost consolidation measures....
