Bloomberg Tax
May 25, 2023, 2:37 PM

German Slump Emboldens Finance Chief’s Drive for Budget Cuts (1)

Kamil Kowalcze
Kamil Kowalcze
Bloomberg News

Germany’s unexpected winter recession prompted Finance Minister Christian Lindner to double down on his push for budget cuts as the three-party ruling coalition struggles to reach an agreement on a finance plan for next year.

After the publication Thursday of data showing a 0.3% contraction in gross domestic product in the first quarter, Lindner reiterated that the “expansionary fiscal policy” Germany has pursued since 2020 must end.

“For a very long time, we lived very well on artificially low interest rates and there were regular upward revisions to government revenue forecasts,” Lindner said at a private equity conference in Berlin. ...

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