MNI BRIEF: Germany Has Fiscal Firepower To Go Again - Scholz

Germany's finance minister Olaf Shultz refused to confirm that lockdown measures in Germany will end before the spring, but said he retains the fiscal firepower to offer additional stimulus should the pandemic's second wave necessitate it and express hope that economic growth will come close to meeting previous expectations.

Asked if the current lockdown will stop at the end of January, or, as some have suggested, persist until the end of March, Scholz said it "makes no sense" to speculate. He declined to say whether he was happy with the pace of vaccinations in Germany, saying instead: "It is a start. We use the vaccines we have, and as we get more vaccines we [will] bring it to the people as well. We have to 'be ready to use all the vaccines available."

One the question of whether Germany will be able to meet its 4.4% growth forecast for 2021, Scholz told participants at a Reuters online event: "We will have to look at the impact the lockdown we have today will have on the economy. As far we see it is not too severe. I am quite optimistic." Should the German economy require another large stimulus comparable to last year's, Scholz said, "There is enough firepower accepted by the parliament already, and we will use it as needed," noting that when the time came, Germany would meet its repayments "through growth."