New Statesman: How investors are paying the German government to borrow
A press review featuring Fabio De Masi
New Statesman: How investors are paying the German government to borrow
"Germany’s government earned €4.25bn between January and August by issuing new bonds, as negative interest rates continue to push down its debt servicing costs.
A state secretary in the finance ministry, Sarah Ryglewski, told Fabio De Masi, an MP for Die Linke party, that the government issued bonds worth more than €275bn in the first eight months of 2021 to finance the federal budget and special funds, receiving a premium of €4.25bn. (...)
De Masi told Reuters that negative rates meant there was no need to return to the debt limits from 2023. “If we return to the debt brake too quickly, there is a risk of choking off the economic recovery, public investment and the welfare state,” he said."