German Finance Minister: No more budget reserves

German Finance Minister: No more budget reserves

The federal government has reached the limit of its fiscal capacity due to intervention in the COVID-19 pandemic, the impact of war on Ukraine and climate fund, German Finance Minister Christian Lindner said today. He stressed that citizens should not be provided further financial support before autumn to ease the impact of growing [...]

He stressed that citizens should not be provided further financial support before autumn to ease the impact of rising inflation.

There are no reserves in the federal budget for 2022. I recommend that the measures already taken be set free to operate”, Lindner said, reports German t-online portal.
In March, the government announced a 16 billion-euro package to help consumers cope with rising energy prices and reduce dependence on Russian gas.

Germany's budget does not usually exceed the deficit limit of 0.5 percent of gross domestic production.

The so-called “debt refrain” was suspended in early 2020, and the government plans to return it in 2023.

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