Economics
Germany to Borrow Extra 40 Billion Euros to Cushion War Blow
- Net new debt in 2022 set to reach 140 billion euros this year
- Lindner to present supplementary budget to cabinet Wednesday
Christian Lindner
Photographer: Liesa Johannssen-Koppitz/BloombergThis article is for subscribers only.
Germany will increase borrowing plans by nearly 40 billion euros ($43 billion) this year to cushion the effect of the war in Ukraine, taking the total for net new debt to almost 140 billion euros, according to three people familiar with the matter.
The adjustment is needed to help finance a range of government measures designed to offset the economic impact of the war and surging energy prices on companies and consumers, said the people, speaking on condition of anonymity before the fiscal plan is presented to the cabinet on Wednesday.