Lindner reiterates his “no” to Draghi: dangers for too excessive frequent debt | EUROtoday

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The day after the presentation of the Draghi report on competitiveness, German Finance Minister Christian Lindner reiterated his opposition to the issuance of recent frequent debt and careworn that Germany “must set an example” for different EU international locations when it comes to funds self-discipline. “What effect would it have if Germany, as the largest economy in the European Union, deliberately broke the European Stability Pact?”, the minister stated in the course of the debate on the 2025 funds of Olaf Scholz's authorities. “Germany – he added – must set an example and respect not only its own rules, but also those of Europe.” The Union has set the restrict for public deficit at 3% of the gross home product of member international locations however Germany has gone additional, introducing into its Constitution the so-called debt brake rule, which prohibits the state from borrowing greater than 0.35% of its GDP annually.

After being suspended between 2020 and 2023 because of the pandemic and the conflict in Ukraine, the brand new governance pact is now on the launch pad and Lindner doesn’t see a lot room for maneuver for additional spending packages. “We are an anchor of stability, especially in Europe,” insisted the minister who reiterated his opposition to the concept of ​​​​returning to issuing frequent debt after the primary operation linked to the Next Generation EU. “The issuance of common debt can also lead to excessive overall indebtedness in the European Union,” warned Lindner, in accordance with whom every EU member state “must continue to take responsibility for its public finances”. Otherwise, it might all translate into an “invitation to all other countries” to let their deficits slide and will revive the spectre of a “debt crisis” just like the one in 2011 that put the very existence of the eurozone in danger.