Germany intends to increase its 2021 borrowing to about $215 billion to address the coronavirus pandemic and send emergency assistance for businesses as case numbers continue to rise.
Finance Minister Olaf Scholz announced Friday that the country would almost double its planned borrowing for next year to the second-largest amount of net new borrowing in post-war Germany, Reuters reported. In September, Scholz envisioned the nation would borrow almost $115 billion for 2021.
“Our goal is to overcome this pandemic and grow out of it with full strength next year,” Scholz said during the press briefing.
Scholz cited that the 2020 and 2021 stimulus packages would lead to a debt of more than $358 billion, saying, “We know that these are exceptional budgets in 2020 and 2021.” He said the budget designated for financial support will be extended to June 2021, according to Reuters.
Germany’s constitution typically prevents the country from adding new debt through capping the federal budget deficit to 0.35 percent of the output, but parliament halted the rule because of the pandemic.
