The ruling coalition Government could not agree on a way to consolidate the budget. In 1967 Germany experienced its first recession. At this time German budget rules did not allow for active stabilisation policy which contrasted with the increasing demand side-orientation of that period. According to those supporting Keynesian demand management, this was a shortcoming which made a reform of budget rules necessary.
A new article was included into the constitution which laid down that the Federal Government and the Governments of the Länder had to take the overall equilibrium of the economy into account when setting fiscal policy.