Germany can afford billions more in inflation aid, says German finance minister

Germany can afford billions more in inflation aid

Berlin, The Gulf Observer: Chancellor Olaf Scholz had last week promised more measures to help offset soaring food and energy costs without busting the debt brake, which limits the country’s public deficit to 0.35 percent of GDP.

Asked in an interview with the Rheinische Post newspaper how big the new package could be while still adhering to the debt brake, Lindner replied: “I think a figure in the low double-digit billions is achievable.”

The relief package would comprise measures aimed at both low and middle-income households as well as “targeted economic aid for energy-intensive companies”, he said.

Inflation in Germany reached 7.5 percent in July, fractionally lower than the 7.6 percent recorded in June, with energy prices set to rise even further as the country heads into winter.

The government had already earlier this year unveiled a €30 billion package to help consumers beat inflation, including a fuel tax cut and a cheap public transport ticket for June, July and August.