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

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  • Germany’s debt interest payments could soar next year, finance minister warns
By: Talia Koe Posted on June 22, 2022

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

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BERLIN, June 18 (Reuters) – Finance Minister Christian Lindner warned that interest charges on Germany’s general public financial debt could reach 30 billion euros subsequent year thanks to soaring curiosity prices and increasing debt degrees, introducing that he would resist phone calls to enhance spendinga.

Lindner claimed he required to convey an conclusion upcoming calendar year to the three years of authorities largesse that experienced characterised attempts to prop up the economy by the coronavirus disaster and reapply Germany’s constitutional financial debt brake future yr.

“We are encountering perilous inflation that has to be braked,” he instructed the Welt am Sonntag newspaper in an interview. “Preparedness to consider entrepreneurial threats could be decreased. We can not permit this come to be an economic crisis.”

Germany invested 4 billion euros on fascination last 12 months, explained Lindner, from the business-welcoming No cost Democrat celebration, adding that he would resist calls from his coalition companions for elevated investing.

“We can’t manage ill-directed subsidies any much more,” he reported. He listed subsidies for buying electrical and hybrid cars that were being accessible even to really higher earners as examples of subsidies that should really be scrapped.

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Reporting by Thomas Escritt
Modifying by Sandra Maler

Our Standards: The Thomson Reuters Believe in Ideas.

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