© Archyde.com. German Finance Minister Christian Lindner during a meeting in Berlin on June 8, 2022. Photo: Hannibal Haneschke/Archyde.com.
BERLIN (Archyde.com) – German Finance Minister Christian Lindner said on Monday there was a risk of a period of high inflation and low growth in the wake of Russia’s invasion of Ukraine that pushed already high inflation even higher.
“Stagflation is a possible scenario,” Lindner told a conference in Berlin.
He said the best way to counteract price pressures might be to end previous subsidies to boost the economy and that Germany and Europe should return to fiscal discipline.
He added that the constitutional brake on debt in Germany, which is currently suspended, will apply once more next year. This will include a reduction in the level of new borrowing from 140 billion euros (146 billion) this year to just 10 billion euros.
(dollar = 0.9591 euro)
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)
