Germany Foresees Additional Borrowing for 2022

Germany foresees additional borrowing for 2022. The country plans to borrow close to an additional 100 billion Euros.

German Finance Minister Olaf Scholz stated that they plan to borrow an additional 99.7 billion Euros next year in order to strengthen the recovery after the coronavirus (Covid-19) epidemic. The targeted new borrowing plan represents 22 percent more than the 81.5 billion euros in the previously announced spending plan. Accordingly, this year and next year, the total borrowing will reach 340 billion Euros. Scholz, who is expected to replace Angela Merkel as Chancellor, will present next year's draft budget on Wednesday, and will propose for the third time this year to suspend constitutional borrowing limits. Scholz confidently argued that Germany was in a position to afford billions of dollars in support for businesses damaged by the epidemic. Underlining that the ratio of debt to gross domestic product among the G7 countries is the lowest in Germany, Scholz said that this ratio is lower than the levels after the financial crisis.