German Cabinet Backs Budget With €16.6 Billion in Net New Debt
- Finance Minister Lindner imposing fiscal prudence on coalition
- Defense ministry only department spared consolidation measures
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Germany’s ruling coalition has approved a 2024 finance plan that slashes net new borrowing to the lowest levels since before the pandemic and squeezes spending across all government departments except for defense.
The budget is part of Finance Minister Christian Lindner’s push for further fiscal consolidation after a constitutional limit on taking on new debt was suspended for three years to help deal with the fallout from the pandemic and the energy crisis triggered by Russia’s invasion of Ukraine.