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Germany’s debt interest payments could soar next year, finance minister warns


© Reuters. FILEPHOTO: Christian Lindner (German Finance Minister) speaks in a session at the Bundestag, Germany’s lower house, on May 31, 2022. REUTERS/Hannibal Hanschke

BERLIN, (Reuters) – Christian Lindner, the Finance Minister warned that Germany’s interest costs could rise to 30 billion euro next year as a result of increasing interest rates and rising debt levels. Lindner also said that he wouldn’t support any increase in spending.

Lindner declared that he wanted to end the three-years of government assistance, which characterised efforts to stabilize the economy in the wake of the coronavirus crisis. He also said that it was his intention to apply Germany’s constitutional debt suspension next year.

In an interview, he stated that “We are facing dangerous inflation” to the Welt am Sonntag newspaper. The ability to be prepared for entrepreneurial risk could be decreased. This cannot become an economic crisis.

Lindner of the business-friendly Free Democrat party stated that Germany spent 4. billion Euros on interest last year and would not accept calls from his coalition members for higher spending.

He stated that “ill-directed subsidies are no longer possible.” Subsidies for hybrid and electric cars, which were made available to even very wealthy people, should also be eliminated.