MNI BRIEF: German Issuance Plans On Schedule Despite Ruling
German Finance Agency says it will press ahead with usual issuance calendar, but may have to use draft 2024 Budget as guide.
German Finance Agency's 2024 issuance plans will be released on schedule, with debt sales likely to be determined according to a new draft Budget, following last week's Constitutional Court decision striking down government plans to transfer billion of euros of Covid-related borrowing to a climate and energy transition fund, a spokesperson for the Deutsche Finanzagentur told MNI.
"Until the budget law comes into effect, the issuance planning is based on a preliminary draft budget. In recent years, it has happened from time to time that no final budget has yet been determined when the issuance calendar is published," the spokesperson said. (See MNI INTERVIEW: Court Ruling Shaves 0.5% From German GDP-Demary)
"Planning uncertainty for 2024 is actually comparatively low. We compensate for that with flexible instruments. As usual, the issuance calendar for 2024 will be highly reliable."
Finance Minister Christian Lindner confirmed on Friday that he will present a supplementary Budget for 2023 next week and said no new debt would be taken on.
"Only the funds already used to overcome the crisis are being placed on a secure legal basis," he said. "We can only talk about the year 2024 and the next few years once we have a legally secure, constitutionally secure situation."