To finance social spending and stimulate the post-Covid-19 economic recovery, the German government plans to raise more than €96 billion of new debt in 2021, giving up its brake on public debt next year as well, according to the draft budget it unveiled on Wednesday 23 September.
Nevertheless, the situation of public finances remains under control: after having been below 60% of national GDP in 2019, “the debt ratio will rise to around 75% of GDP in 2020 and a further increase is not...