Fiscal policy is an important tool used by governments to influence the economy, and Germany is a good example of a country that effectively utilizes various methods of fiscal policy to promote economic growth and manage economic challenges. The German government has implemented a constitutional rule known as the debt brake, which limits government borrowing and supports the country's GDP. Additionally, the investment offensive promotes public and private investment in infrastructure and other sectors, which helps to create jobs and stimulate economic growth. Furthermore, the temporary reduction in VAT rates during the COVID-19 pandemic was a measure taken by the German government to boost consumer spending and support the economy during a challenging time.
