The head of the Ministry of Finance of Germany announced a tenfold increase in public debt
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German Finance Minister Christian Lindner said that the country’s public debt has grown tenfold since the beginning of 2021. In this regard, Mr. Lindner warned against a further increase in the burden on the federal budget.
“In recent years, the country’s debt burden has increased 10 times, from about €4 billion in 2021 to about €40 billion in 2023,” said Christian Lindner (quoted from Die Zeit). He also spoke in support of the “debt brake” mechanism.
“Debt brake” – enshrined in the Constitution of Germany, the prohibition of the government to reduce the budget with a deficit.
Recently, the debt brake mechanism has been suspended several times due to the coronavirus pandemic, but it is planned to be introduced in the upcoming federal budget, recalls Die Zeit.
“During the pandemic and to prevent an energy crisis, the state had to act. But if we don’t get out of the debt-financed crisis policy, we will ruin our country,” the minister said earlier in an interview with T-Online (quote from Ministry of Finance of Germany).
Inflation in Germany is expected to reach 6% this year on the back of declining energy prices. Economics Minister Robert Habek said that inflation in Germany would remain high at the beginning of the year, then it is expected to decrease.
Read about the situation in the global economy in the publication of the Money app “Fragmentation Time”.
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