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BERLIN, June 13 (Reuters) – German Finance Minister Christian Lindner mentioned there was a danger of a period of superior inflation and minimal growth following Russia’s invasion of Ukraine, which had driven already substantial inflation up additional still.
“Stagflation is a possible state of affairs,” he explained to a conference of spouse and children-owned enterprises in Berlin on Monday.
He said the cost strain could greatest be countered by unwinding the subsidies that experienced earlier been specified out to prop up the economy and that Germany and Europe experienced to return to fiscal self-discipline.
He extra that Germany’s constitutional financial debt brake, presently suspended, would arrive back into force up coming 12 months. That would indicate a reduction in the level of new borrowing from this year’s 140 billion euros ($146 billion) to just 10 billion euros.
($1 = .9591 euros)
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Reporting by Christian Kraemer writing by Thomas Escritt Editing by Christoph Steitz
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