Finance Minister Wolfgang Schaeuble was approved for the borrowing of 80.2 billion Euros ($109 billion) for 2010, making it the highest borrowing figure in record. The government blames this accumulating debt on the global downfall of the economy. However, there are plans to reduce the budget deficit and a bill known as the “debt brake” is being implemented. Nevertheless, the European Commission has grounds of worry that Germany is being too optimistic about their future and too vague on theirs plans to recuperate.
Germany’s debt brake plan is a little unrealistic because it calls for annual reductions of the budget deficit and the intolerance of any additional debts. There are no specific concepts as to how this bill will be executed and this has caused some concern as to how exactly Germany will recover efficiently. A little below half of Germany’s budget is dedicated to employment, labor, and social benefit costs and the rest in interest payments and defense. The continuation of workers is extremely important in keeping the country running and the expenditures from debt are inevitable. However, excessive money spent on war, such as the mission in Afghanistan is sucking up much spending. Hopefully the German government and Chancellor Merkel have a Plan B up their sleeves.