German CDU leader: Debt rules only allow limited fiscal leeway

BERLIN (Reuters) - The leader of Chancellor Angela Merkel's Christian Democrats (CDU) has poured cold water on hopes that Berlin could soften its fiscal stance and consider taking on new debt to finance a costly climate protection package.

"The debt brake allows the federal government a certain amount of leeway, but it is limited constitutionally. The scope is narrow," CDU chairwoman Annegret Kramp-Karrenbauer told Focus magazine.

Asked whether the federal government would have to give up its balanced budget goal to finance the planned climate protection package, Kramp-Karrenbauer said: "The black zero policy (of not taking on new debt) in the framework ...