Inflation in Germany accelerated noticeably in May. Goods and services cost an average of 7.9 percent more than a year earlier, as reported by the Federal Statistical Office. Finance Minister Lindner wants to make the fight against high inflation the top priority.
Inflation in Germany accelerated noticeably in May. Goods and services cost an average of 7.9 percent more than a year earlier, according to an initial estimate by the Federal Statistical Office. Economists had only expected 7.6 percent, after 7.4 percent in April. Energy prices have risen noticeably since the Russian war against Ukraine began three months ago. In addition, there are delivery bottlenecks due to interrupted supply chains due to the corona pandemic.
Federal Minister of Finance Christian Lindner currently sees combating high inflation as the priority for fiscal policy. "We have to break the spiral of inflation," said the FDP leader in Berlin after consultations with the party committees. The decisive prerequisite for this is the "end of the expansive financial policy" of the past few years.
In this context, Lindner again insisted on complying with the debt brake again in 2023. For the upcoming budget deliberations, this means a return to a "policy that has to deal with shortages" and a stronger prioritization of desired spending. "The traffic light coalition is only now being formed," said the minister.
"We end the addiction to more and more debt and subsidies," announced Lindner. "It's about showing responsibility towards the generation of children and grandchildren." The high inflation is "an enormous economic risk," he warned.
Despite tight budgets, Lindner wants to implement tax cuts. On the other hand, he rejected the climate money demanded by the Greens and the SPD to relieve consumers. This was "not properly thought through," he said. He also opposed an ecological transformation "on the drawing board". The climate money was agreed in the coalition agreement, but without a concrete timetable.