Germany Postpones Debt Reduction Plan Amid Upcoming Snap Elections

Germany has postponed its submission of the medium-term debt reduction plan to the European Commission until after February's snap elections. Finance Minister Joerg Kukies explained this delay, highlighting economic challenges and the need for new government formation to determine budget decisions.

Germany has decided to delay the submission of its medium-term plan for reducing public debt to the European Commission until after the country's snap elections in February. The decision was confirmed by Germany's stability council, responsible for coordinating federal and state finances.

German Finance Minister Joerg Kukies addressed the postponement during a recent press conference, noting the absence of a fixed submission date due to uncertainties about government formation. Kukies emphasized the importance of establishing reliable conditions for future investments to aid the German economy's return to growth.

During the council meeting, both federal and state representatives warned of the increased difficulty in preparing balanced budgets, given the economic and fiscal challenges currently confronting Germany. As of 2024, Germany is expected to underperform among the G7 economies for the second consecutive year.

(With inputs from agencies.)