Germany’s Merkel sweeps aside idea of running up new debt

Chancellor Angela Merkel has vehemently rejected calls for Germany to run up new debt to finance investment in climate protection and other things

Chancellor Angela Merkel has vehemently rejected calls for Germany to run up new debt to finance investment in climate protection and other things.

After years of balanced budgets, left-leaning opposition politicians have called for the government to borrow more to finance investment in climate protection and social spending.

But Merkel has been adamant about sticking to a policy of no new borrowing. She told parliament Wednesday: “It surprises me that there is such disparaging talk in this house about a balanced budget.”

Merkel insisted Germany is investing more than ever and said that “a decent budget means investment as part of a balanced budget — anything else is absurd.”

In a tweet, Merkel’s center-right party said: “Yes, we admit it, we have a little fetish: solid finances without new debt.”