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Christian Lindner wants to push new debt to nine billion euros

2022-03-11T12:10:28.235Z


The federal government wants to reduce its net borrowing by 90 billion euros in the coming year and thus comply with the debt brake again. This only works because armament costs are reclassified to a shadow budget.


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Finance Minister Christian Lindner

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Michele Tantussi / AFP

Despite the war in Ukraine, Federal Finance Minister Christian Lindner (FDP) wants to comply with the debt brake requirements again from 2023, according to SPIEGEL information.

This year, however, he is once again making use of an exception due to the corona pandemic and is planning net borrowing of 99.7 billion euros, just as much as the previous government.

In 2023, according to the current state of budget planning, new borrowing should fall to around nine billion euros.

After that, it will level off between ten and twelve billion euros by 2026.

Exact figures will be available in the middle of next week when the federal cabinet approves the budget for 2022 and the financial plan up to 2026.

The figures are currently being coordinated between the departments.

A shadow household makes it possible

The debt brake allows the federal government to take on new debt of a maximum of 0.35 percent of gross domestic product, in absolute figures around twelve billion euros.

When the economy is good, the permissible borrowing is slightly lower, when it is bad it is slightly higher.

Lindner will be able to meet the requirements of the constitutionally anchored debt brake again in the future because he is installing the planned special fund for the Bundeswehr outside the federal budget.

This special pot of 100 billion euros should be allowed to independently take out loans that are not counted in the regular budget.

For this purpose, he gets so-called credit authorizations approved by the Bundestag.

50.1 billion euros for defense spending in the regular budget

Contrary to what was initially planned, the special fund is not set up for five years.

Instead, it should exist indefinitely.

The government can take out the loans as needed to finance large armaments projects.

She wants to use the funds to increase the defense spending provided for in the federal budget.

For 2022 to 2026, Lindner has earmarked 50.1 billion euros in the regular budget, a good three billion euros more than in 2021.

The repayment of the special fund should only start when the 100 billion euros have been fully utilized.

The federal government should repay the obligations "in a reasonable time," according to the Ministry of Finance's draft wording for the necessary amendment to the Basic Law.

rei

Source: spiegel

All business articles on 2022-03-11

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