Germany’s financial obligation interest payments might skyrocket next year, financing minister cautions

BERLIN (Reuters) – Finance Minister Christian Lindner alerted that interest charges on Germany’s public financial obligation might reach 30 billion euros next year due to increasing rates of interest and growing financial obligation levels, including that he would withstand calls to increase costs.

Lindner stated he wished to bring an end next year to the 3 years of federal government largesse that had actually characterised efforts to prop up the economy through the coronavirus crisis and reapply Germany’s constitutional financial obligation brake next year.

“We are experiencing dangerous inflation that has to be braked,” he informed the Welt am Sonntag paper in an interview. “Preparedness to take entrepreneurial risks could be reduced. We can’t let this become an economic crisis.”

Germany invested 4 billion euros on interest in 2015, stated Lindner, from the business-friendly Free Democrat celebration, including that he would withstand calls from his union partners for increased costs.

“We can’t afford ill-directed subsidies any more,” he stated. He noted aids for purchasing electrical and hybrid cars and trucks that were readily available even to extremely high earners as examples of aids that need to be ditched.