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POLITICS

Germany plans return to debt-limit rules in 2023

Germany will reinstate its so-called debt brake in 2023 after suspending it for three years to cope with the impact of the coronavirus pandemic, sources in the finance ministry said Wednesday.

German Finance Minister Christian Lindner (FDP) at an event in Berlin on June 15th.
German Finance Minister Christian Lindner (FDP) at an event in Berlin on June 15th. Photo: picture alliance/dpa | Michael Kappeler

The government will borrow 17.2 billion euros ($18.1 million) next year, adhering to the rule enshrined in the constitution that normally limits

Germany’s public deficit to 0.35 percent of overall annual economic output, despite new spending as a result of Russia’s war in Ukraine, the sources said.

The new borrowing set out in a draft budget to be presented to the cabinet on Friday is almost 10 billion euros higher than a previous figure for 2023 announced in April.

However, “despite a considerable increase in costs, the debt brake will be respected,” one of the sources said.

Although Germany is traditionally a frugal nation, the government broke its own debt rules at the start of the coronavirus pandemic and unleashed vast financial aid to steer the economy through the crisis.

READ ALSO: Debt-averse Germany to take on new borrowings to soften pandemic blow

The government has this year unveiled a multi-billion-euro support package to help companies in Europe’s biggest economy weather the fallout from the Ukraine war and sanctions against Russia.

Berlin has also spent billions to diversify its energy supply to reduce its dependence on Russia, as well as investing heavily in plans to tackle climate change and push digital technology.

But despite the additional spending, Finance Minister Christian Lindner has maintained the aim to reinstate the debt brake in 2023.

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POLITICS

‘A good thing’ for footballers to express values, says France’s PM

France's Prime Minister Elisabeth Borne - speaking in Berlin - said that footballers should be allowed to express their values, amid controversy over FIFA's stance against the 'OneLove' armband on the pitch.

'A good thing' for footballers to express values, says France's PM

“There are rules for what happens on the field but I think it’s a good thing for players to be able to express themselves on the values that we obviously completely share, while respecting the rules of the tournament,” said Borne at a press conference in Berlin on Friday.

Germany’s players made headlines before Wednesday’s shock loss to Japan when the team lined up for their pre-match photo with their hands covering their mouths after FIFA’s threat to sanction players wearing the rainbow-themed armband.

Seven European nations, including Germany, had previously planned for their captains to wear the armband, but backed down over FIFA’s warning.

Following Germany’s action, Wales and the Netherlands have since come out to say they would not mirror the protest.

Borne’s visit to Germany was her first since she was named to her post in May.

Following talks with German Chancellor Olaf Scholz, the two leaders signed an agreement for “mutual support” on “guaranteeing their energy supplies”.

Concrete measures outlined in the deal include France sending Germany gas supplies as Berlin seeks to make up for gaping holes in deliveries from Russia.

Germany meanwhile would help France “secure its electricity supplies over winter”, according to the document.

France had since 1981 been a net exporter of electricity to its neighbours because of its nuclear plants. But maintenance issues dogging the plants have left France at risk of power cuts in case of an extremely cold winter.

The two leaders also affirmed their countries’ commitment to backing Ukraine “to the end of” its conflict with invaders Russia.

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