BERLIN, Nov 30, Reuters -- Germany's Finance Minister Christian Lindner pledged to champion solid public finances and a reduction of debt levels across the euro zone, so that the European Central Bank ECB could fight inflation without hesitation if needed.
Lindner's comments were posted on Twitter after data showed that German consumer price inflation accelerated further in November to reach its highest level in nearly three decades.
The inflation gives rise to legitimate concerns. In the case of currency devaluation, we'll observe how it develops after the pandemic, Lindner wrote in his tweets.
Lindner, whose business-friendly Free Democrats are set to be the smallest junior partner in a three-way coalition with the centre-left Social Democrats and the pro-spending Greens, said the new government would not push prices any further.
There will be no tax increases, according to Lindner, who said that the three parties agreed to reduce electricity prices by abolishing a special surcharge introduced to finance the expansion of renewable energies.
Lindner promised the government would give back any additional revenue caused by rising carbon prices to households.
Lindner warned that excesses of government deficits would restrict the ECB from fighting inflation if necessary.
The ECB should keep an arm's length from governments, by resisting pressure to bankroll indebted states, or pursue goals other than price stability, according to outgoing Bundesbank President and ECB policymaker Jens Weidmann.