Debt brake (Financial policy, foundations)
The debt brake protects the federal budget from structural deficits. It stipulates that the Confederation may only spend as much as it collects in receipts – after adjusting for fluctuations due to the economic cycle. In this way, the Confederation can save in good times and spend more in times of crisis. Over the long term, the debt brake helps to stabilise or reduce the debt ratio. It is enshrined in the Constitution.
