Germany Suspends Debt Ceiling Again

The German parliament on Tuesday suspended, once again, the debt limits in the constitution to allow for increased government borrowing of up to EUR 180 billion in 2021, Reuters reported.

The increased government debt aims at funding stimulus spending to help Europe’s largest economy face the economic consequences of the Coronavirus pandemic.

This is the second time after the parliament suspended the debt ceiling to provide the government with the opportunity to borrow EUR 218 billion during 2020.

The German government plans to increase Coronavirus aid for companies to about EUR 4.5 billion per week next month, according to an official statement.

“Cohesion and solidarity are hence the imperative of the hour,” said the Economy Minister Peter Altmaier.

“We will not leave our companies and their employees alone at this difficult time.”

Meanwhile, Finance Minister Olaf Scholz said recently that the goal is to overcome this pandemic and grow out of it with full strength next year.