Finance Minister: Lindner wants to make debt reduction in the EU binding

Finance Minister Christian Lindner wants the EU to return to strict budgetary rules after the massive borrowing in the Corona crisis.

Finance Minister: Lindner wants to make debt reduction in the EU binding

Finance Minister Christian Lindner wants the EU to return to strict budgetary rules after the massive borrowing in the Corona crisis. A more reliable and ambitious path to debt reduction is needed, the FDP politician told the "Handelsblatt". In accordance with the German proposal for the reform of the EU Stability and Growth Pact, according to the "Handelsblatt" the debt rules should also remain in place. These allow member states to incur annual new debt of a maximum of three percent of economic output and total debt of a maximum of 60 percent.

In addition, Lindner wants to prescribe debt reduction. So far, the principle that the member states may only have an annual structural deficit of 0.5 percent or have to approach it is not binding. Lindner wants to change that: the medium-term budgetary targets should become binding. A gradual adjustment to a broadly balanced budget would also be accepted, he said.

The EU Commission intends to present its proposal for the Stability Pact reform in autumn. Various camps have formed among the members. Germany has always rejected far-reaching reforms and a relaxation of debt rules that other countries are demanding.

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