Tax & Spend
Germany to Have €5 Billion Extra Budget Leeway in 2024
- Borrowing rules permit additional new debt during a downturn
- Economy ministry to revise this year’s GDP forecast to -0.4%
Christian Lindner.
Photographer: Liesa Johannssen-Koppitz/BloombergThis article is for subscribers only.
Germany’s federal government will have room to increase net borrowing by around €5 billion ($5.3 billion) next year due to a mechanism that permits additional new debt during an economic downturn.
Finance Minister Christian Lindner had penciled in net borrowing of €16.6 billion for 2024, bringing the federal government’s finances back in line with a constitutional limit known as the “debt brake” after it was suspended during the pandemic and the energy crisis.