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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GERMANY
Chancellor Olaf Scholz has been speaking to the Bundestag regarding the 2023 supplementary budget and the wider issues affecting the German federal budget in the wake of the Constitutional Court ruling on off-budget funds. During the address, in which Scholz was loudly heckled by opposition lawmakers, the chancellor sought to both emphasise his gov'ts intent to carry forward modernisation projects that could deliver long-term growth, but also warn of the impact of the ruling on both his gov't but also future administrations.
- Scholz: "Will be able to end energy price brakes at year-end due to lower prices, well-filled gas storages...Should energy prices unexpectedly jump, we can take counter measures quickly."
- Scholz: "Working intensely to make all decisions necessary for 2024 budget as quickly as possible."
- Scholz: "It would be a serious mistake to neglect Germany's modernisation in face of challenges....German states have greatest interest in securing investments in chip industry, climate-friendly steel and battery plants."
- Scholz: "One thing is clear: this ruling creates a new reality — for the federal government and for all current and future governments, at both federal and state level...A reality, however, that makes it more difficult to achieve important and widely shared goals for our country.”
The Bundestag will begin debate on the supplementary 2023 budget (agreed upon by the Cabinet yesterday) on Friday 1 Dec. The gov't argues that the extension of the debt brake suspension is constitutionally warranted as an emergency due to the impact of high energy prices.
Chart 1. Germany Federal Budget and Off-Budget Funds, EURbn
Source: Bloomberg, German Finance Ministry, Federal Audit Court. N.b. Off-budget funds are multiyear
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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