The German government plans to raise another 62 billion euros with the bonds. The money is needed to finance the costs of the support measures to tackle the corona crisis. Berlin must have permission from parliament for the extra billions.

All in all, the total of debt securities this year would amount to 218 billion euros, insiders around the process said. The official announcement has yet to be made.

Chancellor Angela Merkel’s cabinet will sign the additional budget on Wednesday before it is submitted to parliament for approval. Earlier this month, the coalition agreed to a stimulus package of 130 billion euros to stimulate consumer spending in the short term and to allow companies to invest again.

German Finance Minister Olaf Scholz has repeatedly said that Germany’s financing needs are manageable and that the government can also fall back on unused funds.

Germany’s current financing needs are turning around from years of rigorous fiscal discipline. In March, Parliament agreed to an additional debt of EUR 156 billion. The German economy is expected to shrink by 6.3 percent this year.

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