Germany Plans To Focus On Reducing Sovereign Debt, Fiscal Stability - Finance Minister

The new German government favors reducing the sovereign debt and securing monetary stability as its cornerstone fiscal policies, planning to extend them to its Group of Seven (G7) presidency, German Finance Minister Christian Lindner said on Monday

MOSCOW (UrduPoint News / Sputnik - 17th January, 2022) The new German government favors reducing the sovereign debt and securing monetary stability as its cornerstone fiscal policies, planning to extend them to its Group of Seven (G7) presidency, German Finance Minister Christian Lindner said on Monday.

There has been much speculation regarding the new administration's approach to monetary policy, with some fearing that Berlin will go back to austerity measures, which along with the COVID-19 pandemic could severely undermine the European Union's weaker economies.

"I am very much in favor of reducing sovereign debt, and this is one of the important details in addition to completing the banking union to solve the problem of the state sovereign nexus, and I think this year, 2022, we will have a comprehensive approach to all these issues, Stability and Growth Pact, banking union and fiscal and monetary stability as a whole, not even in Europe but on the global level; this will be one of the central issues of our German G7 presidency, as well," Lindner said upon arriving at the Eurogroup meeting.

The new coalition of the Social Democrats, the Alliance 90/The Greens, and the Free Democratic Party assumed power in Germany last year, ending 16 years of conservative rule.

Berlin has also taken over the G7 presidency for 2022 from the United Kingdom, the country's third run in the position. It will culminate with a summit at Schloss Elmau (Elmau Castle) in Bavaria, scheduled to take place from June 26-28.