BERLIN (Reuters) – Germany’s new coalition government will pass a supplementary budget on Monday to enable more public investments in the shift towards a green economy, sources said on Thursday.
The three coalition parties agreed to channel more than 60 billion euros ($67.73 billion) of unused debt in this year’s federal budget into a climate and transformation fund, three people familiar with the matter told Reuters on condition of anonymity.
The debt-financed injection means that the government will now make nearly full use of the 240 billion euro debt ceiling originally granted by its parliament for 2021, the sources added.
The budget manoeuvre allows the ruling coalition to beef up the government’s climate and transformation fund this year and possibly also next, when the debt brake is still suspended.
It can then use those funds for further public investments in coming years.
A finance ministry spokesman declined to comment.
($1 = 0.8859 euros)
(Reporting by Michael Nienaber, Editing by Victoria Waldersee)
