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Germany to Ramp Up Borrowing With 2021 Debt of $286 Billion

  • Finance Minister Scholz to present 2022 budget plan this week
  • New government after September election will have final say
Olaf Scholz

Olaf Scholz

Photographer: Krisztian Bocsi/Bloomberg
Updated on

Germany aims to borrow 240.2 billion euros ($286 billion) this year, taking on just over 60 billion euros more debt than initially planned to help mitigate the impact of the coronavirus crisis.

Heavy government spending is set to continue as the country grapples with a fresh wave of the pandemic. Finance Minister Olaf Scholz will propose suspending constitutional borrowing limits for a third straight year when he presents a draft 2022 spending plan alongside his supplementary 2021 budget on Wednesday, according to two senior government officials, who asked not to be identified in line with briefing rules.