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The German government ended 2020 with lower new debt than originally expected

The German government ended 2020 with lower new debt than originally expected given its massive stimulus package for the economy.

The German government ended 2020 with lower new debt than originally expected
Yazar: Tom Roberts

Yayınlanma: 19 Ocak 2021 21:32

Güncellenme: 7 Kasım 2024 09:57

The German government ended 2020 with lower new debt than originally expected

The German government ended 2020 with lower new debt than originally expected given its massive stimulus package for the economy. They said on Monday, two sources from the government that did not want to be named. According to them, Germany's new net debt last year was just below 150 billion euros, which is about a third less than the originally planned 218 billion euros. Berlin eventually needed to borrow less because the money set aside for public investment did not flow into the projects as fast as expected. Even companies in connection with the new coronavirus did not use as many companies as the cabinet expected. And third, the negative impact of the pandemic on tax revenues was also smaller. Nevertheless, Germany's new loans in 2020 were the highest in history and easily broke the previous record of € 44 billion in 2010 after the financial crisis. Finance Minister Olaf Scholz plans a new net debt of up to € 180 billion this year to continue rescue and stimulus measures and protect Europe's largest economy during a new wave of infections.
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