German finance minister warns of stagflation risk, pledges return to fiscal rigour

Lisa R. Parker


German Finance Minister Christian Lindner attends the weekly cupboard conference at the Federal Chancellery in Berlin, Germany, June 8, 2022. REUTERS/Hannibal Hanschke

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BERLIN, June 13 (Reuters) – German Finance Minister Christian Lindner stated there was a possibility of a interval of higher inflation and lower advancement next Russia’s invasion of Ukraine, which had pushed currently high inflation up additional however.

“Stagflation is a achievable state of affairs,” he instructed a meeting of family members-owned firms in Berlin on Monday.

He stated the price force could finest be countered by unwinding the subsidies that experienced previously been specified out to prop up the economy and that Germany and Europe experienced to return to fiscal willpower.

He extra that Germany’s constitutional financial debt brake, at present suspended, would arrive back again into pressure upcoming 12 months. That would imply a reduction in the amount of new borrowing from this year’s 140 billion euros ($146 billion) to just 10 billion euros.

($1 = .9591 euros)

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Reporting by Christian Kraemer creating by Thomas Escritt Modifying by Christoph Steitz

Our Criteria: The Thomson Reuters Have confidence in Ideas.



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