Germany borrowed less money from markets last year than originally planned, with the federal government lowering its 240 billion-euro debt ceiling by 24.8 billion euros, Finance Minister Christian Lindner said on Friday. , according to Reuters.
“So we do what is necessary, but we do not exhaust what is possible,” Lindner told members of parliament.
Germany owed a new record debt of around € 215 billion last year after an unprecedented € 130 billion loan in 2020 to finance measures for the coronavirus pandemic.
Lindner is the leader of the budget-conscious Free Democrats (FDP), part of a ruling coalition led by center-left Social Democrats that also includes the Greens.
He said the government would need to create fiscal reserves in the coming years to prepare for the next crisis, and reiterated the coalition’s plan to return to strict lending limits by 2023, a constitutional rule known as debt relief.
In the coming years, the debt-to-production ratio should be gradually reduced, Linder said, adding that the government wants to reduce the tax burden on citizens and companies.
“There will be no tax increases,” Lindner said.
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Source From: Capital
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