Bloomberg learned about Germany's plans to increase loans to €140 billion due to sanctions

Germany will need additional funds to mitigate the consequences of anti-Russian sanctions and military operations in Ukraine for the German economy

Germany will increase planned loans by almost €40 billion this year in order to mitigate the consequences of the military operation in Ukraine and anti-Russian sanctions on its economy, BLOOMBERG writes, citing sources. After that, Germany's net debt will amount to almost €140 billion.

This is necessary to finance a series of measures that should mitigate the impact of military operations in Ukraine and rising energy prices on companies and consumers, the agency said. The proposal came from Finance Minister Christian Lindner and the financial plan will be presented to the cabinet on Wednesday. After that, it will go to Parliament for consideration and approval.

According to the agency, in 2020 Germany's debt was €130 billion, and in 2021 - a record €215 billion.

The Bundeswehr opposed the supply of heavy weapons to Ukraine Politics

At the end of February, Chancellor Olaf Scholz announced that Berlin had decided to allocate an additional €100 billion for military spending by creating a special fund. Borrowing to finance the fund will be distributed over the next few years, Lindner said. Bloomberg admits that because of this, total new borrowing at the end of this year could exceed €140 billion.

On the eve it became known that German public figures wrote an open letter to Scholz urging him to stop supplying weapons to Ukraine. The authors considered that this prolongs the fighting in Ukraine and delays the diplomatic settlement. In their opinion, by sending weapons, Germany and other NATO members have made themselves a party to the conflict.

On April 19, Scholz stated that Berlin had exhausted the limit of arms supplies to Ukraine from its reserves. At the same time, he said that the government sent a request to arms manufacturers, inquiring about the timing of the production of the necessary. Scholz noted that Kyiv asked for anti-tank guns, air defense systems and long-range artillery.

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