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

German Finance Minister Christian Lindner speaks for the duration of a session of German decreased household of parliament, Bundestag, in Berlin, Germany May well 31, 2022. REUTERS/Hannibal Hanschke

BERLIN, June 18 (Reuters) – Finance Minister Christian Lindner warned that fascination fees on Germany’s public debt could attain 30 billion euros following calendar year thanks to soaring fascination rates and expanding credit card debt concentrations, introducing that he would resist phone calls to improve spendinga.

Lindner claimed he desired to provide an stop subsequent yr to the a few several years of governing administration largesse that had characterised makes an attempt to prop up the economic system by the coronavirus disaster and reapply Germany’s constitutional financial debt brake future year.

“We are dealing with dangerous inflation that has to be braked,” he instructed the Welt am Sonntag newspaper in an job interview. “Preparedness to choose entrepreneurial risks could be lowered. We can not permit this develop into an economic crisis.”

Germany spent 4 billion euros on curiosity last calendar year, claimed Lindner, from the organization-helpful Absolutely free Democrat get together, incorporating that he would resist phone calls from his coalition associates for amplified paying.

“We can not pay for sick-directed subsidies any a lot more,” he reported. He mentioned subsidies for shopping for electrical and hybrid autos that were being readily available even to very high earners as examples of subsidies that should really be scrapped.

Reporting by Thomas Escritt
Editing by Sandra Maler

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