BERLIN (Reuters) - Defence, social spending and interest payments are limiting the scope for other investments in the German budget, German Finance Minister Christian Lindner said on Wednesday.
"Our federal budget is characterised by social spending, defence and interest [payments]," Lindner said at the economic Humboldt forum in Berlin. "These are the big blocks."
For the 2025 budget, some ministries are pushing for higher spending, while the finance ministry insists on the need for fiscal consolidation.
Lindner said that for defence spending, the geopolitical situation will require more investment in security in the coming decades, leaving no room for investment in other areas.
"I see room for manoeuvre in the social bloc," Lindner said. "Getting more people into work reduces public spending, but it also means that people have better opportunities in life."
Lindner reiterated his rejection of new debt, as it increases the interest payment burden.
The minister said that in 2021 four billion euros ($4.33 billion) was paid to international capital markets in interest, while this year the total is almost 40 billion euros.
"I would rather invest taxpayers' money directly in education," Lindner said. "That's what I mean by sustainable financing of the state, because every billion in additional debt is paid for by you."
($1 = 0.9237 euros)