No reserves in Germany's federal budget, says finance minister
Reuters
Published Jun 10, 2022 11:05PM ET
BERLIN (Reuters) - Germany's federal government has reached the limit of its fiscal capacity, its finance minister said, with extra financing to cope with the coronavirus pandemic, the impact of the war in Ukraine and a climate fund having exhausted government coffers.
"There are no reserves in the 2022 federal budget," Christian Lindner was quoted by news website t-online as saying on Saturday.
He warned against granting further financial support before the autumn to citizens to offset the impact of rising inflation. "I advise letting the measures taken so far take effect," he said.
In March, the government announced relief worth 16 billion euro ($16.8 billion) to help consumers cope with soaring energy costs and reduce dependence on Russian gas.
Germany normally operates its budget with a deficit limit of 0.35% of gross domestic product. It aims to reintroduce that rule, known as the debt brake and suspended since the start of 2020, in 2023.
($1 = 0.9509 euros)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.