Merkel's Bavarian allies call for German climate bond

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Merkel's Bavarian allies call for German climate bond
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Germany's Christian Social Union (CSU), the sister party of Chancellor Ange...

FRANKFURT - Germany’s Christian Social Union , the sister party of Chancellor Angela Merkel’s Christian Democrats , are planning to launch a climate bond to help fund its efforts to reduce emission targets.

“Climate change needs billions of euros of investment in climate friendly technologies,” Alexander Dobrindt, a senior lawmaker from the CSU Bavarian party in Merkel’s coalition, told the weekly Bild am Sonntag. “Does it make sense for the state to intervene in the interest rates market? After all, negative interest rates are a sign that investment is too low and that too much is being saved,” he wrote.

A senior government official told Reuters earlier this month that Germany is considering ditching its balanced budget policy to help finance a costly climate protection program with new debt.

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