Stock Groups

Germany should not take on more debt than planned next year

[ad_1]

© Reuters. FILEPHOTO: Christian Lindner of the Free Democratic Party (FDP), is in Berlin for talks about forming what’s called a traffic light coalition government. He arrived there on October 21, 2021. REUTERS/Michele Tantussi/File Photo

BERLIN (Reuters – Germany’s FDP leader Christian Lindner has reacted negatively to a plan to increase public investment to support a shift to a green economy. This would be done by taking on additional debt in the next year.

Lindner said to the conservative newspaper Frankfurter Allgemeine Zeitung, “I believe the planned net borrowing of 100 million euros next year is sufficient,”

Lindner said that it was crucial for the business-friendly Free Democrats to ensure the budget of their future coalition government meets “all the requirements regarding solidity”.

Lindner has been wrangling over Robert Habeck (Greens co-leader) about who is the finance minister and whether Berlin should make more public investments to accelerate the transition to a carbon neutral economy.

Two people who are familiar with coalition negotiations told Reuters the parties discussing increased federal borrowing to fund a large-scale, multi-billion dollar injection to the climate investment fund.

According to sources, parties are considering a proposal that would use the Constitution’s emergency clause as a debt brake rule, and allow for more borrowing than initially intended.

This plan would prevent parties from creating off-budget investments vehicles. These were originally proposed as an alternate idea to avoid debt limits. It also allows for more public investment, to accelerate the transition to a green economy.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]