(ANSA-AFP) - BERLIN, 21 AGO - Germany must take on yet more
debt in 2021 to lessen the impact of the coronavirus on the
economy, Finance Minister Olaf Scholz said Friday. "Next year we
will continue to be forced to suspend the debt rule and spend
considerable funds to protect the health of citizens and
stabilise the economy," Scholz said in an interview with the
Funke media group, referring to Germany's cherished policy of
keeping a strictly balanced budget. Scholz already plans to
borrow around 218 billion euros ($258 billion) this year to help
pay for a huge rescue package, which he previously described as
a big "bazooka", to steer the country through the
coronavirus-induced downturn. That decision marked a momentous
change in the attitude to state borrowing in a country that
amended its constitution in 2009 to rein in spending with a
so-called debt brake. The rule, introduced at the height of the
financial crisis, bans Berlin from taking on more than the
equivalent of 0.35 percent of gross domestic product (GDP) in
new debt in any one year in normal times (ANSA-AFP).
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