(Bloomberg) — The German government plans to raise a further 62.5 billion euros ($70 billion) in debt to help pay for a massive stimulus program designed to pull Europe’s largest economy out of its worst recession since World War II.
That would bring total borrowing this year to 218 billion euros and raise the debt burden to 77% of gross domestic product, according to government officials, who asked not to be identified by name in line with briefing rules.
Chancellor Angela Merkel’s cabinet is due to sign off on the supplementary budget on Wednesday before it goes to parliament for approval. Earlier this month her coalition agreed to a sweeping 130 billion-euro stimulus package to spur short-term consumer spending, and get businesses to invest again.
Finance Minister Olaf Scholz has repeatedly said that Germany’s financing needs are manageable and that the government can also fall back on unused surplus funds.
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