Merkel: Coronavirus Threats Germany's Financial Situation

Merkel: Coronavirus Threats Germany's Financial Situation

German Chancellor Angela Merkel said, "The coronavirus is putting Germany's financial situation in a difficult position." used the expressions. Merkel added that this was due to not knowing how long the pandemic will last. Making a statement on Friday, German Chancellor Angela Merkel said that the financial crisis caused by the Coronavirus (Covid-19) has put the German economy into trouble. Stating that it is not known how long the pandemic will last, Merkel said:

"It is possible to overcome the disease with the development and distribution of the vaccine," Merkel said, "We do not know whether the vaccine will take 3 months, 12 months or 15 months to be found. This poses an unknown risk to our financial capacity. ''

22 Billion Euros To Be Received From The European Union

Stating that Germany has been able to afford all measures until now, Merkel explained that when nothing was done at the point of decision-making, the decision was made by making a risk comparison. In addition, Merkel stated that Germany will receive 22 billion euros from the European Union recovery fund, and that most of this amount will be spent on existing programs and infrastructure investments that address the deficiencies determined by the European Commission. Merkel said, "That's why most of the money will go to the programs we have now decided and planned with the economic incentive program and that have not been fully financed so far." Noting that Germany has to work hard to restore its financial situation, Merkel emphasized that Germany should focus on issues that will affect future competitiveness such as climate change and digitalization.

Germany in Negative Zone

Speaking about Germany's current financial situation, Bloomberg News market reporter John Ainger explained that the country can still borrow for free despite huge stimulus packages and 10-year government bonds are in the negative zone. On the other hand, Ainger stated that the country's being valued as an indicator of Europe has an effect on this, adding that Germany will not permanently spoil the frugal reputation of Germany.