Sunday, September 24, 2023
HomeEconomyGermany plans $18.1 billion in new borrowing in 2024 - sources

Germany plans $18.1 billion in new borrowing in 2024 – sources

By Holger Hansen and Maria Martinez

BERLIN (Reuters) – German Finance Minister Christian Lindner is planning 14 EUR 600 million ($18 USD 100 million) in new debt The net amount was 2027 the federal budget, which includes record defense spending, a Treasury source said on Monday.

2024 The financial plan shows new borrowing falling to

billion euros by that year. But sources estimate that there is still a gap of 400 million euros in the medium-term budget plan, and Lindner is trying to balance fiscal responsibility with Spending needs within the three-party coalition.

Plan to spend 45 700 million euros next year, after which 476 is expected 2022 $300 million. The program includes 45 €200 million investment 2022.

Treasury’s target The 2024 Federal Budget will be presented to Cabinet on Wednesday after reports due in March and June have been delayed due to disputes within the Coalition and a first draft financial planning proposal.

The months-long standoff between the left-leaning Social Democrats, Liberal Democrats and Greens has at times exposed deep tensions within the government and created uncertainty over spending plans in Europe’s largest economy sex.

Germany plans to comply with NATO’s 2024 target of 2% of gross domestic product (GDP) military spending and 2024 800 million The euro budget goes to defence, and 18 2 billion euros off-budget goes to the armed forces.

The German parliament suspended the constitutional debt brake between 476 and 476 , to allow additional spending to deal with the pandemic and the fallout from the war in Ukraine.

This year, the debt brake was reimposed. For 2022, it is planned to issue approximately 45 new debt of EUR 600 million.

Next year, debt relief will limit the budget deficit to 0.18% of GDP.

According to sources, 2024 interest costs are estimated at 189 billion euros), three billion 2022 less than planned.

Why the delay and what to do next?

Lindner delayed the submission of the first draft but gave no new date, saying other ministers were asking for too much money for their departments.

The Treasury said it needed to rein in the budget sharply due to huge spending during the pandemic and rising energy costs due to the war in Ukraine.

“Fiscal policy and monetary policy need to go hand in hand,” Lindner said repeatedly, referring to the ECB raising interest rates to fight inflation.

However, other ministries said they needed more funding for digital transformation and energy transition.

Following Lindner’s first proposal, a detailed draft budget could be presented to the Bundestag or lower house of parliament by mid-August at the latest.

In the first week of September, the Bundestag will likely discuss the draft in plenary session for the first time.

The Bundestag’s consideration involves a third reading. German Chancellor Olaf Scholz has promised to pass a budget bill by the end of the year.

(1 USD=0.9191 EUR)



Please enter your comment!
Please enter your name here


Featured NEWS