Germany plans to return to limiting net new borrowing next year, Chancellor Olaf Scholz said yesterday, after the parties in the ruling coalition reached an agreement on the budget after a month of difficult negotiations, reports Reuters.
Germany's hastily agreed coalition pact to overcome a legal setback to its budget plans is based mainly on spending cuts that will drag further on already insipid growth in Europe's largest economy, economists said. As sought by Finance Minister Christian Lindner, an advocate of budgetary rigour, Germany will reinstate its cap on new net borrowing in 2024 and fill funding gaps worth a total 17 billion euros ($18 billion) largely with cost savings. With the restrictive monetary policy being pursued by the European Central Bank to tame inflation, and with lingering uncertainty over the policy implications of Wednesday's budget deal, the risk is that a shallow recession will be prolonged.
The German government has reached a deal to solve a budget crisis following a month of tense negotiations after a court ruling threw its finances into.
Analysis-German budget fix to further crimp growth in 2024 streetinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from streetinsider.com Daily Mail and Mail on Sunday newspapers.
Germany s hastily agreed
coalition pact to overcome a legal setback to its budget plans
is based mainly on spending cuts that will drag further on
already insipid growth in Europe s largest economy,. -December 13, 2023 at 11:15 am EST
- MarketScreener