BERLIN (AP) — Germany’s debt load won’t reach the level it did in the financial crisis a decade ago as a result of the coronavirus pandemic, the finance minister said Tuesday, and it will still look better than that of Germany’s peers in the Group of Seven did before the virus outbreak.
Olaf Scholz was presenting to parliament a draft 2021 budget that foresees significant borrowing for the second consecutive year as Germany, Europe’s biggest economy, works to limit the economic fallout of efforts to contain COVID-19.
The crisis has derailed the government’s dedication to keeping its budget balanced, long a point of pride. After six years in the black, it is borrowing a net 217.8 billion euros ($253.7 billion) this year to finance rescue and stimulus packages and cover an expected shortfall in tax revenue. Next year, it plans to borrow a further 96.2 billion euros.
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