The German government is to press other eurozone countries to adopt their own versions of Berlin’s balanced budget law as part of a set of sweeping reforms to stabilise the euro.

Germany last year enshrined in its constitution a law that prohibits the federal government from running a deficit of more than 0.35 per cent of gross domestic product by 2016. German states will not be allowed to run any deficit after 2020.

Applied across the eurozone, that would imply much tighter fiscal discipline than the bloc’s existing rules requiring deficits of less than 3 per cent of GDP.

Read more >> | FT.com / Brussels – Berlin calls for eurozone budget laws.