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Marketplace All-in-One

Germany’s economy got a break, but maybe not the kind it’s looking for

Marketplace All-in-One

Marketplace

News, Business

4.51.4K Ratings

🗓️ 1 December 2023

⏱️ 8 minutes

🧾️ Download transcript

Summary

From the BBC World Service: Germany is looking at an $18 billion gap in next year’s budget because of a court decision last week on a German fiscal rule known as the debt brake. Then, Brazil says it’s deploying military reinforcements to its northern border, as tensions rise between its neighbors Venezuela and Guyana over a disputed oil-rich region. And later: a look at the big business of advent calendars.

Transcript

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0:24.0

Germany got a break, but it might not be the break it's looking for.

0:29.0

Hello and you're listening to the Marketplace Morning Report live from the BBC World Service.

0:34.0

I'm Leanna Byrne. Thanks for tuning in.

0:36.0

Germany's economy, the biggest in Europe, isn't doing so well.

0:40.0

It's been hit by storing energy prices and a struggling industrial sector.

0:44.0

Growth figures are pointing toward it going into a recession.

0:47.2

Now on top of all that, Germany is looking at an $18 billion gap in next year's budget.

0:53.6

And it's not because they don't have the money.

0:55.6

It's because of a court decision last week

0:57.5

on a German fiscal rule known as the debt break.

1:00.6

I asked, Professor Monica Schnitzer, chair of the German Council of Economic Experts, to explain.

1:06.5

Well, the ruling said that last year's debt break cannot be used to use credits this year in order to finance the budget this

1:19.8

year that this only is possible if you can declare an emergency situation for this year as well.

1:27.0

That's what the government is now doing.

1:30.0

They are declaring an emergency situation for this year because last year's energy crisis

...

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