Germany pushes up 2021 debt plans to finance new coronavirus aid

People familiar with the matter told Reuters earlier on Wednesday that Scholz is mulling a coronavirus aid package worth up to 10 billion euros to compensate firms forced to close

German Finance Minister Olaf Scholz is planning to take on “much more debt” than initially planned next year to finance new coronavirus aid measures and help companies survive the second wave of the pandemic, a government source said on Wednesday.

Chancellor Angela Merkel and Scholz on Wednesday pressed regional leaders to agree to a partial lockdown which would force restaurants, bars, fitness studios, discos and cinemas to close in November. Schools and nurseries should remain open as well as shops under certain conditions.

The German parliament suspended the debt brake this year to allow the government to take on net new debt