Jan, Priewe. (2021) Reforming the Fiscal Rulebook for the Euro Area – and the Challenge of Old and New Public Debt.
In: IMK Studies. RePEc:imk:studie:72-2021.

Full description at Econpapers

Germany managed to reduce its debt level from 82.4% 2010, a record high, to 59.6% in 2019, i.e., by 22.8 ppt in ten years (the data used in this paragraph are from AMECO, 9 February 2021, “government” is general government including social security institutions). This reduction came along with an average r - g differential of-1.1%, with a moderate growth rate of real output of 1.7% with a mean inflation rate of 1.6% (GDP-deflator). The favourable r–g differential was mainly driven by the fall of the interest payments on debt from 3.5% to 1.3% of GDP, so that the interest burden fell by 2.2 ppt. The structural balance improved by 3 pts, from-2.1 to +0.9%, similarly the structural primary balance. Also, the countercyclical fiscal policy right after the financial crisis in 2009-2010, which stimulated domestic growth and net exports, contributed to a relatively quick recovery (in 2011 the pre-crises GDP was surpassed).