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No reserves in Germany’s federal budget, says finance minister -Breaking


© Reuters. FILE PHOTO. Christian Lindner, German Finance Minister, addresses media at a press conference following the agreement to amend its constitution in order to create a special credit-based defense fund. This was held in Berlin on May 30, 2022. REUTERS/Michele Tantu

BERLIN (Reuters). Germany’s Federal Government has exceeded its fiscal capabilities, according to its Finance Minister. The extra funding is needed for the coronavirus pandemic and the effects of war in Ukraine, as well as for a climate fund, which have exhausted the government’s coffers.

Christian Lindner said on Saturday, “There is no reserve in the 2022 federal buget,” according to news website tonline.

In order to mitigate the rising inflation impact, he warned citizens against any further financial aid being granted before the fall. He said, “I recommend allowing the current measures to take effect.”

The government offered relief in March of 16 billion euros ($16.8billion) to consumers, which was intended to reduce their dependence on Russian gas and help them cope with rising energy prices.

Germany’s budget is normally managed with a deficit limit at 0.35% gross domestic product. The debt brake has been temporarily suspended at the beginning of 2020. It is being reintroduced by the government in 2023.

($1 = 0.9509 euros)