Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Germany's debt interest payments could soar next year, finance minister warns - newspaper

Published 06/18/2022, 01:11 AM
Updated 06/18/2022, 01:15 AM
© Reuters. FILE PHOTO: German Finance Minister Christian Lindner speaks during a session of German lower house of parliament, Bundestag, in Berlin, Germany May 31, 2022. REUTERS/Hannibal Hanschke

BERLIN (Reuters) - Finance Minister Christian Lindner warned that interest charges on Germany's public debt could reach 30 billion euros next year due to rising interest rates and growing debt levels, adding that he would resist calls to increase spendings.

Lindner said he wanted to bring an end next year to the three years of government largesse that had characterised attempts to prop up the economy through the coronavirus crisis and reapply Germany's constitutional debt brake next year.

"We are experiencing dangerous inflation that has to be braked," he told the Welt am Sonntag newspaper in an interview. "Preparedness to take entrepreneurial risks could be reduced. We can't let this become an economic crisis."

Germany spent 4 billion euros on interest last year, said Lindner, from the business-friendly Free Democrat party, adding that he would resist calls from his coalition partners for increased spending.

"We can't afford ill-directed subsidies any more," he said. He listed subsidies for buying electric and hybrid cars that were available even to very high earners as examples of subsidies that should be scrapped.

Latest comments

lol 30 billion euro debt service fee. in the US it will be in excess of a trillion
it's all relative. Germany is smaller than the state of NY....
Stop the war support russia no Ukraine
yes support dictatorships!! :D give them all they want :))
The truth always comes out, usually 13 mos later. Why did they waste money by giving subsidies to the rich?
Germany has been fighting the ECB for years to ask for higher interest rates... Be careful what you are wishing for... Higher rates = higher cost of debt. Simple.
No it hasn't. weidmann maybe pretented to fight the rest of the ECB criminals club but in the end of the day he always folded.
low rates equal inflation. pick your poison I guess.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.