Approval of the Budget Draft Envisaging a 96 Billion Euro Debt from Germany

Approval of the Budget Draft Envisaging a 96 Billion Euro Debt from Germany   The German Council of Ministers approved the draft budget that envisages a debt of 96.2 billion euros in 2021.   The negative effects of the coronavirus, which emerged in China in December 2019 and became a global crisis since the first months of 2020, on the economy continue. As it is known, coronavirus (Covid-19) causes a sudden increase in cases due to the speed of transmission, and as a result, the health system collapses and mass deaths occur. Although the herd immunity strategy came to the fore in order not to stop economic activities at the beginning of the epidemic, restriction decisions were made due to the certain capacity of the health systems. Many restrictions, such as curfews, caused a temporary suspension of economic activities. Although the sectors that can be switched to the remote working system continued to operate and even gain profits, heavy losses were experienced in the sectors based on people. Following the normalization process, nowadays, where the second wave anxiety prevails, governments continue to make decisions one after another in order to recover the damaged current economy and eliminate the predicted troubles.   One of these decisions came from Germany. The German government suspended its balanced budget policy before the epidemic, and had already gone to debt of 218 billion euros. In the statement made by the German Council of Ministers today, it was stated that the federal budget draft, which envisages a new debt of 96.2 billion Euros in order to prevent the negative growth of GDP and to achieve rapid recovery, will be approved.   German Deputy Prime Minister and Finance Minister Olaf Scholz also made evaluations on the issue. Scholz emphasized that the budget for the next year is reserved for the fight against the epidemic and "We clearly show that we will go on the road together with the 2021 budget. Even if it costs a lot of money, we are determined. Doing nothing costs our country much more." used the expressions.