German debt reduction demands would be ‘straitjacket’ on EU, officials warn

German calls for tough debt reduction targets to be embedded in EU fiscal rules have hit stiff opposition from Brussels and a number of leading capitals, with officials warning they would stifle EU plans to modernise its budgetary policy.

Christian Lindner, German finance minister, reiterated his country’s demand for tighter fiscal discipline as he attended informal meetings in Stockholm on Friday and Saturday, saying he wanted a system that would include clear numerical benchmarks to deliver reliable reductions in debt.