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ifo Dresden: Coronavirus Debt No Danger to German Federal State Finances

Most German federal states will return to their 2019 debt levels over the next five to ten years, regardless of the maturity of the loans, according to calculations by the ifo Institute’s Dresden Branch. “The key consideration here isn’t repayments, but economic growth,” says ifo researcher Remo Nitschke. “As economic output rises over the coming years, the proportion of debt will fall.”