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Saturday 5 December 2020
Record budget and new debt
Merkel: Helps not infinite in the previous measure
Germany is taking billions to deal with the crown crisis and its aftermath. The national debt increases considerably. But Chancellor Merkel makes clear that bankruptcies and mass unemployment would be devastating. However, the current aid could not be continued indefinitely.
Faced with budget consultations in the Bundestag, Chancellor Angela Merkel agrees that the huge public aid in the Crown crisis will be less. The current level of support cannot be continued indefinitely, he said on his video podcast. Therefore, everyone has a great responsibility. “Federal, state, and local governments must work together well and constructively to best manage the pandemic and its aftermath.”
The grand coalition wants to take on nearly € 180 billion in new debt next year and re-suspend the debt brake in the Basic Law. Merkel defended the new debt. Since the beginning of the pandemic, the goal has been to mobilize financial resources to counter this. “The costs would be even higher, financial and social, if many companies collapsed and millions of jobs were lost.” The federal government could also use large sums in 2021 because the budget was good in recent years.
The Bundestag wants to debate the new budget from Tuesday. More than a third of what is expected to be the last budget of the current grand coalition will be financed with debt. Expenditures of almost half a billion euros and loans almost double are expected. Many citizens can expect tax cuts, too. The Left speaks of the “most expensive campaign budget in the history of the Federal Republic.” In autumn of next year a new parliament will be elected.
