Min menu

Pages

The Stability Council does not expect normal state finances to return until 2024

 The Stability Council does not expect normal state finances to return until 2024


The Stability Council does not expect normal state finances to return until 2024
50 and 20 Euro banknotes are displayed in this picture illustration taken November 14, 2017. REUTERS / Benoit Tessier / Illustration



Berlin (Reuters) - The Stability Council for reviewing German public finances does not expect normality before 2024 due to the coronavirus crisis.


 Due to the consequences of the pandemic, it is permissible to exceed the upper limit for the structural funding deficit by 2023, the Federal Ministry of Finance announced on Friday with a view to the entire state. According to European guidelines, there is actually an upper limit of 0.5 percent. This year, however, the deficit is likely to amount to five percent of economic output, and even around seven percent in 2021. 


However, the Stability Council does not regard the figures as a violation because the pandemic is equivalent to a natural disaster and justifies an exception. However, the expectations for 2021 have recently deteriorated and improved somewhat for 2020. The reason for this is that, during the crisis, a lot of economic aid is more likely to have an impact on the budget next year. From 2024 it is expected that the requirements can be complied with again.


 Federal Finance Minister Olaf Scholz said after the video conference of the Stability Council that the debt level would remain low by international standards. The federal government and the states would therefore fight the crisis with all their might.

watchincalm
watchincalm
I have ambitions and goals in my life, and I am now trying to achieve them calmly, as the name also came on my channel and website.

Comments