Germany has problems with money – level 1

Germany has problems with money

01-12-2023 07:00

Germany has problems with money. It starts after the top court cancels 60 billion euros for climate plans.

The government stops the debt brake for some time. Experts worry what this will mean. Next year’s budget is not clear. There can be emergencies like COVID-19. The government may raise taxes and cut help to businesses. This can have a big impact on the country’s situation. When companies and people are afraid of what will happen, they spend less money. They save more. A big risk is less public investment.

The country’s debt may grow. But it is not a crisis yet.

Difficult words: budget (money which you have and you can spend it on something), tax (money which you pay to the government), public investment (money which a government spends on things like schools and hospitals).

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

What measures could the government take to help the economy without jeopardizing its debt?

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