Germany to take on at least 30 bn euros in debt: report

FRANKFURT: Germany will contract new debt of at least 30 billion euros (42 billion dollars) in 2009, more than double the amount this year, a press report said on Wednesday.

Finance Minister Peer Steinbrueck had expected until now to borrow 18.5 billion euros next year, based on estimated tax revenue that assumed Europe's biggest economy would grow by 0.2 US, the Sueddeutsche Zeitung newspaper reported.

But on Tuesday, economic ministry officials said the German economy could contract by as much as 3.0 US next year.

Government rescue plans announced throughout Europe have signalled that bond markets could see a flood of new issues in 2009, meaning that some countries, Greece and Italy in particular, might have to pay much more to obtain the credit they need.