Germany’s debt interest payments could soar next year, finance minister warns

German Finance Minister Christian Lindner speaks during a session of German lessen house of parliament, Bundestag, in Berlin, Germany May 31, 2022. REUTERS/Hannibal Hanschke

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BERLIN, June 18 (Reuters) – Finance Minister Christian Lindner warned that interest fees on Germany’s public financial debt could arrive at 30 billion euros future year owing to increasing curiosity charges and rising debt degrees, introducing that he would resist calls to enhance spendinga.

Lindner said he needed to deliver an stop upcoming yr to the three several years of govt largesse that experienced characterised makes an attempt to prop up the economic system via the coronavirus disaster and reapply Germany’s constitutional debt brake upcoming year.

“We are encountering perilous inflation that has to be braked,” he explained to the Welt am Sonntag newspaper in an interview. “Preparedness to take entrepreneurial pitfalls could be reduced. We are not able to permit this turn into an economic crisis.”

Germany spent 4 billion euros on fascination final year, explained Lindner, from the enterprise-welcoming Free of charge Democrat party, including that he would resist calls from his coalition companions for increased spending.

“We are not able to pay for ill-directed subsidies any extra,” he explained. He outlined subsidies for getting electric powered and hybrid vehicles that had been obtainable even to very large earners as illustrations of subsidies that need to be scrapped.

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Reporting by Thomas Escritt
Editing by Sandra Maler

Our Criteria: The Thomson Reuters Belief Ideas.