German finance minister warns interest payments on German debt could soar next year

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© Reuters. FILE PHOTO: German Finance Minister Christian Lindner speaks during a session of the Bundestag, the lower house of Germany’s parliament, in Berlin, Germany, May 31, 2022.REUTERS/Hannibal Hanschke

BERLIN (Reuters) – Interest charges on Germany’s public debt could hit 30 billion euros next year due to rising interest rates and mounting debt, Finance Minister Christian Lindner warned, adding that he would resist increased spending call.

Lindner said he wants to end next year the government’s three years of generous aid trying to shore up the economy during the coronavirus crisis and to reimpose Germany’s constitutional debt brake next year.

“We are experiencing dangerous inflation that must be contained,” he told the Welt am Sonntag newspaper in an interview. “May reduce the willingness to take entrepreneurial risks. We cannot let this become an economic crisis. »

Lindner of the business-friendly Liberal Democrats said Germany spent 4 billion euros in interest last year, adding that he would resist calls from coalition partners for more spending.

“We can no longer afford misguided subsidies,” he said. He cited subsidies for the purchase of electric and hybrid vehicles, which are available to even very high income earners, as examples of subsidies that should be eliminated.

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