German Finance Minister Christian Lindner called on Tuesday (22/03/2022) in favor of creating a broad international reconstruction plan, which it will need after the end of the war with. “We hope peace will soon reign,” said Lindner during the German Bundestag’s debate on the state budget. – Our solidarity with the European neighbor must be long-lasting – he argued.
“And that is why we need an international Marshall plan for Ukraine,” added the German minister. [Plan Marshalla był stworzonym przez Stany Zjednoczone programem odbudowy gospodarek państw europejskich po II wojnie światowej – red.]
Lindner also stressed that Germany has already mobilized “substantial aid” for Ukraine. – Our support for the fight of people in Ukraine for freedom will be continued – he assured. And he added that when there is peace in this country, Germany will also be ready to support Ukraine “in reconstruction, efforts for a good future and on the way to partnership with”.
Germany without a debt brake. The war in Ukraine and the pandemic are having a negative impact on German finances
The Russian invasion of Ukraine and the ongoing coronavirus pandemic will have a heavy impact on the finances of the German state. Lindner announced that also this year Germany will not meet the debt brake included in the constitution. This rule states that the central budget deficit may not exceed 0.35% annually. GDP. However, in exceptional circumstances, such as an economic crisis or a natural disaster, the debt brake may be suspended. In 2020, the application of this rule was suspended due to the coronavirus pandemic and the related economic crisis. According to Lindner, both the persistent pandemic and the crisis situations justify abandoning the expenditure rule.
The finance minister announced that the government would present a supplementary budget that would assume a higher deficit and would take into account spending to support refugees from Ukraine and ease the burden on citizens. The current project assumes new debt at the level of EUR 99.7 billion and the creation of a special-purpose fund in the amount of EUR 100 billion for the modernization of the Bundeswehr.
The German opposition sharply criticized the government’s plans on Tuesday for the record deficit and lack of details as to the financial consequences of the war in Ukraine.
(RTR, AFP / spectator)
Source: Gazeta
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