MOSCOW, November 19 A court ban in Germany on the redistribution of unclaimed loans amounting to 60 billion euros will entail severe short-term consequences for the German economy , German Finance Minister Christian Lindner said in an interview with Bild.
Earlier, the German Constitutional Court, in its decision, declared unlawful the redistribution of 60 billion unclaimed loan funds from the additional budget for 2021 to combat the coronavirus pandemic to the climate protection fund. In its decision, the court relied on the current rule of the so-called “debt brake,” which does not allow the state’s debt budget to be increased beyond measure.
“The short-term consequences are severe. In the long term, we can gain benefits. We are now forced to modernize the economy with less government subsidies,” Lindner said.
By long-term benefits, Lindner means increasing the efficiency of the economy through reducing bureaucracy, developing appropriate technologies and attracting private capital. However, he stressed that there will be a shortage of funds in the near future.
“In the future, there will be a shortage of government funding that was intended to update the economy and infrastructure,” the minister said.
According to him, the government is working on “new concepts” in connection with the current situation.