Germany faces 10 bln euro rise in interest costs – committee document

The rising cost of borrowing and high inflation mean Germany’s federal government faces some 10 billion euros ($10.25 billion) more in interest payments than previously expected in 2023, a parliamentary budget committee document seen by Reuters shows.

The interest burden would rise to some 40 billion euros from 29.6 billion estimated by the government, according to a summary of the results of the so-called adjustment meeting by the budget committee of the Bundestag, the lower house of parliament.

This would be 10 times the expenditure of 3.9 billion euros in 2021. There was no comment immediately available from the finance ministry or budget experts in the ruling coalition.

In the past, such estimates for the interest burden have often been higher than the amount ultimately spent.

($1 = 0.9753 euros)