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Germany increased the deficit by a record

Germany increased the deficit by a record. The Finance Minister Olaf Scholz promises the country will manage its debt.

Germany increased the deficit by a record
Yazar: Tom Roberts

Yayınlanma: 26 Nisan 2021 08:35

Güncellenme: 22 Kasım 2024 16:17

Germany increased the deficit by a record

Germany increased the deficit by a record. 370 members raised their hands to increase the deficit, 78 against and 184 abstentions. The change was supported by lawmakers from the Conservative Union CDU / CSU and the Social Democracy (SPD). Against were the Liberals (FDP), the post-communist Left and the Alternative for Germany (AfD), which is described as populist to far right. The Greens, who are hoping to form a government after the September elections, have refrained. In a parliamentary debate, Olaf Scholz said that increasing debt was necessary to support society as a whole during a pandemic. The finance minister, who is also vice chancellor, has also repeatedly reassured that the German economy is strong enough to handle debt. Last year's budget ended with a deficit of 218 billion euros, which was the highest in the history of the federal republic. For this year, Scholz planned a deficit of almost 180 billion euros. Due to the unfavorable development, which included additional costs for helping entrepreneurs and the purchase of vaccines, as well as shortfalls in tax revenues, but he asked for further debt. From next year, Scholz wants to slow down the debt pace, with a deficit of 81.5 billion euros. The final composition of the budget, which the government wants to prepare in the summer, will be decided by the Federal Assembly in its new composition. Parliamentary elections await the country in September, after which a coalition of Greens, liberals and Scholz's Social Democrats could come to power.
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