Germany should not go into debt more than expected next year – FDP leader

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BERLIN, November 3 (Reuters) – German FDP leader Christian Lindner, who is pushing for finance minister in a three-party coalition government, has cast cold water on a proposal to allow increased investment governments for the transition to a green economy by taking on more debt next year.

“I think the already planned net borrowing of 100 billion euros for next year is already sufficient, to put it with caution,” Lindner told the conservative Frankfurter Allgemeine Zeitung.

Lindner added that it was important to his business-friendly Free Democrats that the first budget of the future coalition government met “all the requirements for soundness.”

Lindner is arguing with Greens co-leader Robert Habeck over who should get the post of powerful finance minister and how Berlin should fund more public investment for a faster transformation to a carbon neutral economy. Read more

Two people familiar with the coalition talks told Reuters that the three parties working to form Germany’s new coalition government are discussing an increase in federal borrowing next year to allow a one-time multibillion-euro injection into the government. government climate investment fund. Read more

To create more fiscal firepower, parties are considering a proposal to use the emergency clause for the debt brake rule in the constitution for a third year in a row and take on more than $ 100 billion in debt. euros initially planned for 2022, the sources said.

The plan would allow parties to avoid creating off-budget investment vehicles, which had been launched as an alternative idea to bypass debt limits and allow more public investment to accelerate the transition to a green economy. .

Reporting by Michael Nienaber; Editing by Alison Williams

Our Standards: Thomson Reuters Trust Principles.


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