German finance minister warns of stagflation risk, pledges return to fiscal rigour

German Finance Minister Christian Lindner attends the weekly cabinet conference at the Federal Chancellery in Berlin, Germany, June 8, 2022. REUTERS/Hannibal Hanschke

BERLIN, June 13 (Reuters) – German Finance Minister Christian Lindner explained there was a danger of a time period of superior inflation and small advancement subsequent Russia’s invasion of Ukraine, which experienced pushed currently higher inflation up further more continue to.

“Stagflation is a doable state of affairs,” he informed a conference of relatives-owned companies in Berlin on Monday.

He said the rate strain could best be countered by unwinding the subsidies that experienced formerly been given out to prop up the economic system and that Germany and Europe had to return to fiscal self-control.

He additional that Germany’s constitutional credit card debt brake, currently suspended, would occur again into power upcoming yr. That would indicate a reduction in the level of new borrowing from this year’s 140 billion euros ($146 billion) to just 10 billion euros.

($1 = .9591 euros)

Reporting by Christian Kraemer crafting by Thomas Escritt Modifying by Christoph Steitz

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