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Scholz Ally Questions Restoration of German Debt Limit Next Year

  • SPD co-leader Esken cites fallout from pandemic, Ukraine war
  • Finance Minister Lindner wants debt brake restored in 2023
Saskia Esken, co-chairwoman of Germany’s Social Democratic Party

Saskia Esken, co-chairwoman of Germany’s Social Democratic Party

Photographer: Liesa Johannssen-Koppitz/Bloomberg

The co-leader of German Chancellor Olaf Scholz’s Social Democratic party raised further doubts over whether the government will be able to restore a constitutional limit on new borrowing next year as planned.

The lingering impact of the coronavirus pandemic on Europe’s biggest economy together with the fallout from Russia’s invasion of Ukraine mean that a restoration of the so-called “debt brake” probably won’t be possible, SPD Co-leader Saskia Esken said Monday in an interview with public broadcaster ZDF.