Germany's Scholz plans 2021 budget with new debt of over 80 bln euros - source

German Finance Minister Olaf Scholz is working on a budget for next year that would see Berlin take on net new debt of at least 80 billion euros to fund more measures in the fight against the coronavirus pandemic, a source said on Thursday.

German Finance Minister Olaf Scholz is working on a budget for next year that would see Berlin take on net new debt of at least 80 billion euros to fund more measures in the fight against the coronavirus pandemic, a source said on Thursday. The exact debt figure is still subject to negotiations within Chancellor Angela Merkel's conservative-led coalition government, but Scholz is trying to avoid net new debt exceeding 100 billion euros in 2021, the source told Reuters.

The step will require another suspension of Germany's constitutionally enshrined debt limits as was already the case this year, though Scholz is determined to stick to the fiscal rules from 2022 onwards, the source added. A finance ministry spokesman declined to comment.