Home / Market Update / Germany Approves an Additional Budget That Includes a New Record Borrowing

Germany Approves an Additional Budget That Includes a New Record Borrowing

An official said that the government of German Chancellor Angela Merkel approved a debt-financed supplementary budget of 60 billion euros, 71 billion dollars, which raises the new borrowing to a record level exceeding 240 billion euros this year.

The revised budget highlights Berlin’s willingness to continue huge borrowing-financed spending during the Covid-19 pandemic, as Europe’s largest economy suffers a third wave of coronavirus infections linked to a more contagious strain.

An official said that Finance Minister Olaf Schultz also proposed a draft budget for next year that includes a net new debt of 81.5 billion euros, which means that Parliament for the third year in a row suspends restrictions imposed by the constitution on borrowing.

The debt plans mean that Germany’s total borrowing due to the pandemic could exceed 450 billion euros from 2020 to 2022.

Check Also

Bitcoin Faces Continued Pressure Amid Fed’s Hawkish Stance

Bitcoin traded marginally lower on Monday, reflecting ongoing caution among investors as macroeconomic uncertainties and …