BERLIN (Reuters) – Chancellor Angela Merkel’s cabinet authorised on Wednesday a debt-financed supplementary budget of 60 billion euros ($71 billion) which can carry annual new borrowing to a record excessive of greater than 240 billion euros this 12 months, a authorities official stated.
Finance Minister Olaf Scholz additionally urged a draft budget for subsequent 12 months with extra web new debt of 81.5 billion euros for which parliament should droop a constitutional debt brake for a 3rd 12 months in a row, the official added.
The revised budget plans imply that Germany’s total pandemic-related web new debt might exceed 450 billions euros from 2020 to 2022.
The budget plans underline Germany’s readiness to proceed large deficit spending within the COVID-19 pandemic as Berlin is struggling to include a 3rd wave of coronavirus circumstances linked to a extra infectious variant.
($1 = 0.8455 euros)
Reporting by Michael Nienaber and Holger Hansen, modifying by Emma Thomasson