German Finance Minister Christian Lindner expressed his serious concerns about the course of German development and the “loss of citizens’ prosperity” in an interview with Bild am Sonntag. In a dramatic appeal, at least in relation to the more restrained tone in the recent presentation of the German budget and the extraordinary expenses due to the war in Ukraine, the German Minister of Finance emphasizes that the situation is difficult to manage and for the state itself because financial resources are limited.
“The war in Ukraine makes us all poorer, because we have to pay more for imported energy (…) Even the state can not compensate for this loss of prosperity,” he told Bild on Sunday. As he stressed, the German government is doing everything to “prevent a bigger shock”, especially for the middle class, low-income groups and companies. But “because funding will be limited, support measures will be temporary.”
“Growth is declining, prices are rising”
“I am seriously concerned about the progress of development. “Growth is declining, prices are rising,” said the German Liberal Finance Minister, referring to recent figures from the German Statistical Office for inflation of around 8% in March and the pessimistic forecasts of the German government’s Council of Wise Men under heavy pressure. shadow of the Russian invasion of Ukraine but also of the threatening energy crisis in Europe.
“What the German government is trying to prevent now is stagnant inflation,” Christian Lindner said. Finally, fearing that Germany would enter a long period of uncertainty and recession, Christian Lindner believes that Germany may need to rethink another decades-old constant: the model of the social and ecological market economy.
The debt brake will be observed if there is no other disaster
Despite the crisis – or rather the ongoing crises of recent years – the German Ministry of Finance remains firmly committed to the observance of the so-called “horseradish” which is enshrined in the German Constitution and which essentially acts as a barrier to the expansion and perpetuation of public debt.
But will Germany be able to comply with this constitutional requirement next year, the derogation from which is now deemed necessary because of the war in Ukraine? “Yes. “If there is no new catastrophe, the debt brake must be maintained,” said Christian Lindner, stressing that the level of public debt in Germany must be normalized within a decade.
DW- Dimitra Kyranoudi, Berlin
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