Merkel Party Head Says Balanced-Budget Goal Remains in Force
Carolynn Look
Aug 11 2019, 3:30 AM Aug 12 2019, 11:39 AM August 11 2019, 3:30 AM August 12 2019, 11:39 AM
(Bloomberg) -- The head of Chancellor Angela Merkel's party said Germany doesn't need deficit spending to combat climate change, though incentives to reduce carbon emissions should be overhauled.
Ensuring sustainability includes a balanced budget as well as policies that lead to "climate neutrality," Christian Democratic Union chairwoman Annegret Kramp-Karrenbauer said in a column in the Welt am Sonntag newspaper. She suggested capping CO2 emissions for vehicles and buildings while easing German taxes and other levies on energy and increasing incentives for clean-energy upgrades.
The Finance Ministry said Thursday there's no government decision to abandon Germany's balanced-budget policy. Reuters, citing a government official it didn't identify, reported earlier that Germany was considering issuing new debt to fund measures against climate change, leading bunds to spike lower.