Germany will tighten its financial reins once the corona crisis is over. That is what the German Minister of Economic Affairs Peter Altmaier promised. For example, the new debts that Berlin incurs for the first time since 2013 will be repaid from 2023.
“When the crisis ends, we will pursue strict fiscal policies again,” said Altmaier. Europe’s largest economy aims to resolve budgetary imbalances as soon as possible.
Germany announced a massive aid package of € 750 billion on Monday to mitigate the economic outages caused by the corona virus. The government wants to limit layoffs as much as possible and comes to the rescue of German companies in several ways. The additional expenses are fully financed with the issue of new bonds.
Altmaier further emphasized that now is a good time to borrow as interest rates are at historically low levels. Investors are confident that Germany will repay the money, the minister said.
Berlin thinks the German economy may shrink by 5 percent this year due to the corona crisis. The country now has more than 27,000 infections with the lung virus. The death toll is at 114.