BERLIN - German Finance Minister Olaf Scholz is considering borrowing up to another 50 billion euros to finance Berlin’s bumper stimulus package, a senior official with knowledge of the discussions told Reuters.
The plan to take on more debt underlines Germany’s massive fiscal shift from Europe’s former austerity champion to one of the biggest spenders in the euro zone’s efforts to counter the economic impact of the coronavirus pandemic. Another official with knowledge of the budget plans also said the cabinet wanted to pass the extra budget next Wednesday, adding the finance ministry was looking at issuing more debt than the originally envisaged 25-30 billion euros.
The additional borrowing of up to 50 billion euros would come on top of Berlin’s debt-financed supplementary budget worth 156 billion euros agreed in March.