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MNI INTERVIEW: German Budget Faces "Severe" Cuts-Gov't Advisor

(MNI) LONDON

Opposition to debt-brake workarounds means 2024 fiscal, growth outlooks are gloomy, Joerg Rocholl says.

Political opposition to circumventing Germany’s debt-brake means will mean “severe” cuts to next year’s federal budget, the chair of the advisory board to the Federal Ministry of Finance told MNI in an interview, with uncertainty over the fiscal outlook set to worsen the outlook for growth.

Following a recent Constitutional Court Ruling, any attempt by chancellor Olaf Scholz’s coalition government to suspend strict deficit and spending rules beyond 2023 will be met with strong opposition and legal threats, Joerg Rocholl said in an interview. (See MNI BRIEF: German Court Rules Against EUR60 Bln Fund Transfer)

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Political opposition to circumventing Germany’s debt-brake means will mean “severe” cuts to next year’s federal budget, the chair of the advisory board to the Federal Ministry of Finance told MNI in an interview, with uncertainty over the fiscal outlook set to worsen the outlook for growth.

Following a recent Constitutional Court Ruling, any attempt by chancellor Olaf Scholz’s coalition government to suspend strict deficit and spending rules beyond 2023 will be met with strong opposition and legal threats, Joerg Rocholl said in an interview. (See MNI BRIEF: German Court Rules Against EUR60 Bln Fund Transfer)

Keep reading...Show less