the debt of The German state drops in 2019 for the first time in 17 years under the so-called Maastricht limit of the EU stability Pact. This is one of the new stability programme, the Federal Ministry of Finance for the EU Commission to advise the Cabinet this Wednesday and say goodbye.
Accordingly, the Ministry of Olaf Scholz (SPD) is expected in the current year, a debt-to-58,75 percent of the gross domestic product – according to the Maastricht criteria, the debt ratio of a maximum of 60 per cent is allowed. In the past year, this still stood at 60.9% of the economic output, 2020, the Ministry expects a debt ratio of 56.5 per cent.
The reason for this positive development, the Ministry sees the good overall economic development. The Federal government, Länder, municipalities and social security funds recorded significant Surpluses.
the draft is also characterized with the financial policy for the current year as a “more expansionary”. The aim was to use the financial leeway to strengthen public investment in infrastructure, education and research. The Ministry of Finance, also stated that the state’s investment in 2018 rose by almost eight percent to 78.9 billion euros.
Until the end of April of each year, the EU member States present their medium-term financial plans of the European Commission and the Council of economic and Finance Ministers. The Euro-member States follow the provisions of the stability and growth Pact.