November 26, 2022

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General will live on forever

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

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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 explained there was a hazard of a period of time of higher inflation and reduced advancement following Russia’s invasion of Ukraine, which experienced pushed already significant inflation up more nevertheless.

“Stagflation is a doable state of affairs,” he told a conference of household-owned organizations in Berlin on Monday.

He explained the price tension could most effective be countered by unwinding the subsidies that had beforehand been supplied out to prop up the financial system and that Germany and Europe had to return to fiscal self-discipline.

He included that Germany’s constitutional credit card debt brake, currently suspended, would come again into pressure upcoming year. That would indicate 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 writing by Thomas Escritt Modifying by Christoph Steitz

Our Benchmarks: The Thomson Reuters Rely on Principles.

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