Euro bailouts push up German debt
The Local · 2 Jul 2011, 09:54
Published: 02 Jul 2011 09:54 GMT+02:00
Germany will only have to borrow €28 billion in 2012, Der Spiegel, reported on Saturday, referring to next year’s draft budget, which the cabinet is set to approve this week. In March Finance Minister Wolfgang Schäuble had still been expecting to have to take on €31.5 billion in debt next year.
However, according to Der Spiegel, the finance minister is increasing projections for the following years. He now expects that in 2013 Germany will have to borrow €25 billion, in 2014 the figure will be €19 billion and in 2015 the state still need to borrow around €15 billion.
The increase in the borrowing will be necessary to cover Germany’s contribution of €22 billion from 2013 to the new permanent rescue fund for struggling euro-zone members.