Germany’s Debt Spending May Become the New Normal, Official Says
- ‘A balanced budget isn’t obligatory,’ deputy minister says
- Economy’s transformation takes precedence over ‘black zero’
This article is for subscribers only.
Germany’s spending to counter the coronavirus crisis and modernize its economy means the country shouldn’t return to a balanced budget anytime soon, according to a senior Finance Ministry official.
The comments are an unusual admission by a government official that Germany’s debt-financed spending during the pandemic might reflect a new approach rather than just a temporary break from the tradition of balanced budgets, or a so-called black zero.