Figure 5 shows a scenario of gradual reduction of the tax burden over time resulting from a freeze on nominal expenditure, against a background of strict compliance with fiscal commitments. This scenario would result in a slower reduction of public debt, albeit on a sustainable path, which would have the advantage of allowing for a tax burden reduction.
Time-varying Volatility, Financial Intermediation and Monetary Policy, Discussion Paper 46/2016, Deutsche Bundesbank, December 2016. Frankfurt. Federal Statistical Office of Germany (2018). Number of business insolvencies down 6.6% in 2017 year on year, Press release 91, March 2018. Wiesbaden. Financial Stability Board – FSB (2011). Key Attributes of Effective Resolution Regimes for Financial Institutions, October 2011. Basel. Financial Stability Board (2017).