New Statesman: How investors are paying the German government to borrow

New Statesman: How investors are paying the German government to borrow[1]

"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."

Links:

1. https://www.newstatesman.com/chart-of-the-day/2021/09/how-investors-are-paying-the-german-government-to-borrow