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Germany’s incoming finance minister sounds the alarm about inflation

BERLIN (Reuters) – Germany’s incoming Finance Minister Christian Lindner on Tuesday vowed to support solid public finances and reduce debt levels across the eurozone so that the European Central Bank (ECB) can can fight inflation without hesitation if necessary.

Lindner’s comments, posted on Twitter, come after data showed on Monday that Germany’s consumer price inflation accelerated further in November to hit a nearly three-decade high.

“Inflation raises legitimate concerns. In the event that the currency depreciates, we will observe how it develops after the pandemic,” Lindner wrote in his tweet.

Lindner, whose business-friendly Liberal Democratic Party is set up as the smallest junior partner in a tripartite coalition with the centre-left Social Democrats and the pro-spending Greens Party, said the new government will not push the price further.

“Therefore, there will be no tax increase,” Lindner said, adding that the three parties had agreed to reduce electricity prices by repealing a special surcharge imposed to finance renewable energy expansion. .

Lindner also promised that the government would return any additional revenue resulting from rising carbon prices to households.

“In Europe and Germany, we will support solid public finances and limited debt. Too high a government deficit will constrain the ECB against inflation if necessary,” warned Lindner.

His remarks were echoed by outgoing Bundesbank President and ECB policymaker Jens Weidmann, who said the ECB should keep its distance from governments by resisting pressure on banks. indebted countries or pursue goals other than price stability.

(Reporting by Michael Nienaber; Editing by Kirsten Donovan)

https://whbl.com/2021/11/30/germanys-incoming-finance-minister-rings-alarm-bell-on-inflation/ Germany’s incoming finance minister sounds the alarm about inflation

JACLYN DIAZ

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