Germany has problems with money – level 2

01-12-2023 07:00

The German government is in a financial crisis. The top court annulled 60 billion euros in climate fund spending. This will stop the debt brake for some time.

The government is looking for ways to save money which will probably impact the 2024 budget and cause economic troubles. To stop the debt brake, emergency claims, like COVID-19, are necessary. The government may raise taxes and cut subsidies to get control again. These things affect not only companies but families too.

A big risk is less public investment. Experts say that Germany’s debt may rise, but the crisis is not that big yet.

Difficult words: annul (to announce officially that something no longer exists), emergency claim (to state that a particular kind of situation is an emergency), subsidy (a sum of money which the government gives to someone as a form of help).

You can watch the original video in the Level 3 section.

What measures could the German government take to get control of its financial situation?


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