BERLIN – 16 German states plan to receive 95 billion euros ($ 107 billion) in new debt as part of their spending efforts to protect the economy from the worst coronavirus shocks, Der Spiegel magazine reported on Saturday.
The loan appears above 218.5 billion euros of debt planned by the Federal Government to help finance support for the economy which is expected to shrink more than 6% this year due to the crisis and closure.
Der Spiegel calculated, after surveying the regional finance ministry, that German states, which enjoy extensive autonomy under a highly-devolved state system of government, took an additional debt of 95 billion euros.
The states already have a total debt of around 580 billion euros, the magazine said.
(Reporting by Thomas Escritt; Editing by David Clarke)
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