Germany's Scholz plans 2021 budget with new debt of over 80 bln euros – source

BERLIN, Sept 3- German Finance Minister Olaf Scholz is working on a budget for next year that would see Berlin take on net new debt of at least 80 billion euros to fund more measures in the fight against the coronavirus pandemic, a source said on Thursday. The exact debt figure is still subject to negotiations within Chancellor Angela Merkel’s conservative-led…

BERLIN, Sept 3 (Reuters) – German Finance Minister Olaf

Scholz is working on a budget for next year that would see

Berlin take on net new debt of at least 80 billion euros to fund

more measures in the fight against the coronavirus pandemic, a

source said on Thursday.

The exact debt figure is still subject to negotiationswithin Chancellor Angela Merkel’s conservative-led coalitiongovernment, but Scholz is trying to avoid net new debt exceeding100 billion euros in 2021, the source told Reuters.

The step will require another suspension of Germany’sconstitutionally enshrined debt limits as was already the casethis year, though Scholz is determined to stick to the fiscalrules from 2022 onwards, the source added.

A finance ministry spokesman declined to comment.(Reporting by Michael NienaberEditing by Paul Carrel)