Germany plans EUR16.6 billion in new borrowing for 2024 – Reuters

Citing sources from Germany's Finance Ministry on Monday, Reuters reported that the country’s Finance Minister, Christian Lindner, is planning net new debt of EUR16.6 billion ($18.06 billion) for the 2024 federal budget, which includes record spending on defence.

The draft 2024 budget and financial plan would be published on Wednesday, the sources added.

Additional takeaways

Record budget of EUR51.8 bln planned in defence for 2024 and EUR19.2 bln outflows from special funds.

German 2024 budget and financial planning until 2027 will comply with debt brake.

Still gap of EUR14.4 bln in midterm budget planning until 2027.

Draft 2024 budget includes EUR54.2 bln in investments.

Interest costs estimated at EUR36.9 bln in 2024 following EUR39.9 bln expected in 2023.

Market reaction

EUR/USD is unperturbed by the German headlines, trading at 1.0889, down 0.19% on the day, at the press time.