German cabinet approves budget with no net new debt to 2020

[May 02, 2018]   BERLIN (Reuters) - Germany's cabinet on Wednesday approved budget plans that foresee the federal government taking on no net new debt through to 2022 and investment rising this year and next before falling.

German Finance Minister Olaf Scholz arrives for the Informal meeting of economic and financial affairs ministers (ECOFIN) in Sofia, Bulgaria, April 27, 2018. REUTERS/Stoyan Nenov

"I am convinced: in good economic times, a responsible fiscal policy must achieve both a reduction in debts and a rise in investments," Finance Minister Olaf Scholz said in a statement.

Investment would rise from 34.0 billion euros ($40.81 billion) last year to 37.0 billion this year and 37.9 billion in 2019, before decreasing to 33.5 billion in 2022, Finance Ministry fiscal plans approved by the cabinet showed.

(Writing by Paul Carrel; Editing by Madeline Chambers)

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