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By Reuters Staff
(Adds Scholz, background)
BERLIN, March 1 (Reuters) - Germany is likely to suspend constitutionally enshrined limits on new borrowing again next year to finance more rescue and stimulus measures to help the economy recover from the COVID-19 pandemic, Finance Minister Olaf Scholz said on Monday.
Speaking at a news conference to present the election manifesto of his centre-left Social Democrats (SPD), Scholz said one of the main goals was to keep public investments high in infrastructure, climate protection and digitalisation.
Asked whether he was planning to suspend the so-called debt brake, which limits new borrowing to a tiny fraction of economic output, for a third year in a row in 2022, Scholz said he would present next year’s draft budget on March 24.
Berlin eyes record public investment of 62 bln eur in 2021 (Adds Scholz, budget details)
BERLIN, Jan 19 (Reuters) - The German government has finalised its 2020 budget with net new debt of 130.5 billion euros ($158.3 billion), the highest level of annual borrowing in post-war history due to the COVID-19 pandemic but still 40% less than originally planned.
Finance Minister Olaf Scholz is planning for record new debt of up to 180 billion euros this year to continue rescue and stimulus measures to shield Europe’s largest economy from the impact of a potentially aggressive new wave of infections.
“Despite the pandemic, we have public finances under control,” Scholz said. “We have the strength to keep on countering the coronavirus impact with massive action - and that’s exactly what we are doing.”