With a view to the consequences of the Ukraine war for the people in Germany, Federal Finance Minister Christian Lindner warns of a “loss of prosperity” – and is sticking to the debt brake.
Federal Finance Minister Christian Lindner anticipates a “loss of prosperity” for the people in Germany as a result of the Ukraine war.
“The Ukraine war is making us all poorer, for example because we have to pay more for imported energy,” the FDP leader told the “Bild am Sonntag”. “The state cannot compensate for this loss of prosperity either.” The federal government will “cushion the biggest shocks”. That is why the broad middle will be relieved, the needy will be supported and the existence of threatened companies will be secured. “But since the funds are limited, these measures can only be temporary.”
In view of an inflation rate of 7.3 percent in March, Lindner said: “I have serious concerns about economic development. Growth is falling, prices are rising.” The federal government is doing everything to avoid the risk of so-called stagflation.
Stick to the debt brake
«In the long term we will have to lay new foundations for prosperity. Germany must renew its growth model of a social and ecological market economy.» The last time the inflation rate in the old federal states was as high as in March was in autumn 1981, when mineral oil prices had also risen significantly as a result of the effects of the First Gulf War.
Despite the crises, Lindner wants to comply with the debt brake again next year as planned. When asked about it, he replied: «Yes. If there is no new catastrophe, the debt brake must be complied with.” That’s what the constitution says. “It must be possible to normalize the debt level before the end of this decade.”
Lindner admitted that he had to “organize enormous funds and take out debt for them”. He works to ensure that the regular budget is solid beyond Corona and the Ukraine war. “I defend the debt brake of the Basic Law.”
Source: Stern
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