Friday March 19, 2021
For 2021 and 2022
Scholz plans 150 billion additional debts
According to a media report, the coronavirus pandemic and its economic consequences are forcing Finance Minister Scholz to massively expand new debt this year and next. The look-up is necessary because a much shorter lockdown was expected.
According to "Spiegel", Federal Finance Minister Olaf Scholz is planning additional new debt of up to 150 billion euros in 2021 and 2022. The reason for this is the corona pandemic and its economic consequences, the magazine reported. For the supplementary budget of this year, Scholz is planning with around 70 billion euros in addition to the already decided 180 billion euros. The new debt will rise to the record value of around 250 billion euros.
The look-up is necessary because the federal government originally expected a much shorter lockdown. For 2022, the plans provide for new borrowing of up to 80 billion euros, according to the report. To do this, the government must again apply the exception from the debt brake for next year. The first details on the 2022 budget are to be presented next week. Scholz wants to explain this to the press on Wednesday together with the medium-term financial planning.
The FDP has sharply criticized the Federal Finance Minister's plans. "Too early, too much, too indebted – the Union and the SPD use the last days before Easter to pump up the federal budget with further debts," said FDP chief steward Otto Fricke of the "Rheinische Post". A 50 billion reserve remains unused. "The pandemic must neither be an excuse nor a cover for an uncontrolled wave of spending. An additional 150 billion debt for the federal government – 70 billion in 2021 and 80 billion in 2022 – means around 2,000 euros in additional debt for every citizen. Money that our children and grandchildren together with Interest will have to be paid back, "warned Fricke.
"New debts in this amount are neither justified nor justifiable. This shows that although Olaf Scholz presented them shortly before Easter, the supplementary budget and benchmarks for taxpayers are rotten eggs instead of Easter eggs," said the FDP politician. "At the start of the election campaign, Olaf Scholz and Armin Laschet now want to fully open the floodgates. In the coming year, as the pandemic subsides, strong economic growth and increasing tax revenues are to be expected, as the Council of Economic Experts found on Wednesday," said Fricke.
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