Faced with the energy crisis, Germany will borrow more than expected in 2023 – RT in French

Germany will have to borrow almost three times more than what was planned in June to complete its 2023 budget. It nevertheless respects some of its budgetary safeguards, but at the cost of accounting tricks.

“We are in a situation of great economic uncertainty”, acknowledged German Finance Minister Christian Lindner on November 22 on public television. Berlin plans indeed 45.6 billion euros of new loans next year, against only 17.2 billion planned last June, according to the draft budget for 2023, the adoption of which should be recorded on November 25 in the Bundestag. .

The country is particularly affected by the energy crisis, which weighs on the industrial sector and weighs down its production costs. For next year, the government anticipates a recession of 0.4%. To support its economy, while pursuing its policy of public investment in ecological transition and infrastructure, the government must therefore spend more than expected.

The budget will be the first in three years to comply with the debt brake rule, which prohibits the state from borrowing more than 0.35% of its GDP each year. This obligation was lifted from 2020 to 2022 to deal with the coronavirus pandemic.

But to achieve this objective, the government has resorted to accounting tricks, with the multiplication of special funds, not accounted for in the budget. Latest: an envelope of 200 billion over two years to freeze energy prices. Berlin has also created a fund of 100 billion to strengthen its army.

Budgetary devices criticized

Devices criticized by the opposition, which denounces a budgetary sleight of hand. The leader of the CDU on the Finance Committee, Christian Haase, said he was “appalled” in early November, saying that “what is necessary was not spared”.

The minister, who categorically refuses tax increases, defended his project on November 22, saying that he “had no alternative”. “It would be extremely risky from an economic point of view and would be detrimental to employment and investment,” he said of a possible tax hike.

A position criticized by the experts of the council of “economic sages”, very listened to in Germany, which called at the beginning of November to increase taxes for the richest in order to finance these expenses.