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The West German Law to Promote Economic Stability and Growth (June 8, 1967)

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§ 16 (Budget Management of Municipalities)
(1) Municipalities and associations of municipalities shall in their budget management take into consideration the aims set out in § 1.
(2) The Länder shall take appropriate action to ensure that the budget management of the municipalities and associations of municipalities responds to the requirements of general economic equilibrium.

§ 17 (Obligation of Federation and Länder to Supply Information)
The Federation and the Länder shall supply each other with any information they require to implement a fiscal administration responding to economic requirements and to set up their financial plans.

[ . . . ]

§ 19 (Limitation of Borrowing)
In order to avert a disturbance of general economic equilibrium, the Federal Government may, with the consent of the Bundesrat, decree by ordinance having the force of law a limitation to the borrowing of funds by the Federal Government, the Länder, the municipalities and associations of municipalities as well as by public special funds and functional administrative entities, even where such borrowing is otherwise authorized within the framework of budget regulations. Sentence 1 shall not apply to credits raised by municipalities, associations of municipalities or functional administrative entities to finance investment projects by those of their industrial enterprises that have no legal personality.

[ . . . ]

Source of English translation: “Law to Promote Economic Stability and Growth, 8 June 1967,” in Federal German Budget Legislation. Foundations of a Uniform Fiscal and Economic Policy. Translation prepared by the Language Service Division at the Federal Ministry of Finance. Bonn: Federal Ministry of Finance, 1988, pp. 147ff.

Source of original German text: Bundesgesetzblatt 1967 I, p. 582 ff; also reprinted in Christoph Kleßmann, ed., Zwei Staaten, eine Nation. Deutsche Geschichte 1955-1970 [Two States, One Nation. German History 1955-1970]. Göttingen, 1988, pp. 532-34.

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