German finance minister warns of stagflation risk, pledges return to fiscal rigour

German Finance Minister Christian Lindner attends the weekly cupboard meeting at the Federal Chancellery in Berlin, Germany, June 8, 2022. REUTERS/Hannibal Hanschke

BERLIN, June 13 (Reuters) – German Finance Minister Christian Lindner explained there was a risk of a interval of high inflation and low progress adhering to Russia’s invasion of Ukraine, which experienced pushed by now large inflation up additional still.

“Stagflation is a achievable circumstance,” he told a meeting of family members-owned companies in Berlin on Monday.

He claimed the value force could most effective be countered by unwinding the subsidies that had earlier been specified out to prop up the economic climate and that Germany and Europe experienced to return to fiscal self-discipline.

He included that Germany’s constitutional personal debt brake, currently suspended, would occur back into power future 12 months. That would imply a reduction in the stage of new borrowing from this year’s 140 billion euros ($146 billion) to just 10 billion euros.

($1 = .9591 euros)

Reporting by Christian Kraemer crafting by Thomas Escritt Modifying by Christoph Steitz

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