Germany Plans to Boost New Debt by Some 70 Billion Euros in 2021

Chancellor Angela Merkel’s government is asking lawmakers to approve a spending plan for next year that raises planned new debt by about 70% to pay for the fallout from the coronavirus pandemic.

The government is seeking approval to raise net new borrowing to more than 160 billion euros ($190 billion) from 96.2 billion euros in the latest draft, according to a document obtained by Bloomberg News. Aid to companies struggling to survive amid government-imposed lockdowns would account for most of the increase, at around 40 billion euros, the document shows. The government may have to borrow less than planned this year as not all funds will be drawn down by companies.