German Finance Ministry Plans to Increase Federal Investment This Year
Germany’s cabinet approved budget plans that foresee the federal government taking on no net new debt through to 2022 and investment rising this year and next before falling. According to Finance Ministry fiscal plans, investment would rise from 34.0 billion euros ($40.81 billion) last year to 37.0 billion this year and 37.9 billion in 2019, before decreasing to 33.5 billion in 2022.
It also became known that the European Commission urged Germany to increase payments to the EU budget by 12 billion euros per year in the next ten years. The new costs and damages due to Brexit will require Germany as the largest payer to the EU budget from an additional 3.5 to 4 billion euros per year, besides, in the coming years it is necessary to compensate for expenses due to higher prices caused by inflation.