The German Public Finances in the COVID-19 Pandemic
Abstract The general government budgetary position of Germany at the beginning of the coronavirus crisis is advantageous due to extremely favourable conditions of the 2010s. Since 2012, surpluses prevailed, and in 2019 the public debt ratio decreased below 60%. The coronavirus crisis ends this succe...
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| Format: | Article |
| Language: | deu |
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Sciendo
2020-07-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-020-2695-2 |
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| _version_ | 1832571661892714496 |
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| author | Heinz Gebhardt Lars-H. Siemers |
| author_facet | Heinz Gebhardt Lars-H. Siemers |
| author_sort | Heinz Gebhardt |
| collection | DOAJ |
| description | Abstract The general government budgetary position of Germany at the beginning of the coronavirus crisis is advantageous due to extremely favourable conditions of the 2010s. Since 2012, surpluses prevailed, and in 2019 the public debt ratio decreased below 60%. The coronavirus crisis ends this success story dramatically and causes a historically high deficit as well as a rise in the debt ratio to about 77.5% in 2020. This requires consolidating the budget, mainly because age related spending will rise significantly and because an interest rate reversal may involve additional interest payments in the future. To ensure long term debt sustainability, restricting primary expenditures is imperative. |
| format | Article |
| id | doaj-art-750daaef81b146ecb0821a5beab5a293 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2020-07-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-750daaef81b146ecb0821a5beab5a2932025-02-02T12:27:22ZdeuSciendoWirtschaftsdienst0043-62751613-978X2020-07-01100750150610.1007/s10273-020-2695-2The German Public Finances in the COVID-19 PandemicHeinz GebhardtLars-H. Siemers0Fakultät III Wirtschaftswissenschaften, Universität SiegenAbstract The general government budgetary position of Germany at the beginning of the coronavirus crisis is advantageous due to extremely favourable conditions of the 2010s. Since 2012, surpluses prevailed, and in 2019 the public debt ratio decreased below 60%. The coronavirus crisis ends this success story dramatically and causes a historically high deficit as well as a rise in the debt ratio to about 77.5% in 2020. This requires consolidating the budget, mainly because age related spending will rise significantly and because an interest rate reversal may involve additional interest payments in the future. To ensure long term debt sustainability, restricting primary expenditures is imperative.https://doi.org/10.1007/s10273-020-2695-2 |
| spellingShingle | Heinz Gebhardt Lars-H. Siemers The German Public Finances in the COVID-19 Pandemic Wirtschaftsdienst |
| title | The German Public Finances in the COVID-19 Pandemic |
| title_full | The German Public Finances in the COVID-19 Pandemic |
| title_fullStr | The German Public Finances in the COVID-19 Pandemic |
| title_full_unstemmed | The German Public Finances in the COVID-19 Pandemic |
| title_short | The German Public Finances in the COVID-19 Pandemic |
| title_sort | german public finances in the covid 19 pandemic |
| url | https://doi.org/10.1007/s10273-020-2695-2 |
| work_keys_str_mv | AT heinzgebhardt thegermanpublicfinancesinthecovid19pandemic AT larshsiemers thegermanpublicfinancesinthecovid19pandemic AT heinzgebhardt germanpublicfinancesinthecovid19pandemic AT larshsiemers germanpublicfinancesinthecovid19pandemic |