Europe has entered the economic vortex of the war in Ukraine for good as the effects are affecting and seem to create a “black hole” even in the strongest economy in Europe, that of Germany.
An additional debt of 39.2 billion is provided by the additional budget to be submitted by the German Ministry of Finance, raising the total new borrowing for the year to 138.9 billion euros.
According to information from Handelsblatt, the supplementary budget is already ready and concerns the economic consequences mainly of the war in Ukraine but also of the pandemic, while it includes, among others, the single energy price, additional child allowance, financial assistance for companies affected by its effects. war and new funds for humanitarian aid abroad.
Finance Minister Christian Lindner said last month that the supplementary budget should only fund expenditures related to Ukraine, but it was finally decided to allocate funds for the economic consequences of the pandemic.