The state’s financial assets increase by almost 40 billion euros

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The state's financial assets increase by almost 40 billion euros




German parliament Bundestag elects new chancellor in Berlin


© Reuters/HANNIBAL HANSCHKE
German parliament Bundestag elects new chancellor in Berlin


Berlin (Reuters) – The financial assets of the German state increased noticeably before the Corona crisis.

The stock of cash, deposits, securities, loans and other receivables totaled 964.4 billion euros at the end of 2019, as the Federal Statistical Office announced on Thursday. That is 4.3 percent or 39.9 billion euros more than at the end of 2018. This was the highest value since the calculations began in 2010. However, this is also offset by public debt of around two trillion euros.

All levels of government increased their financial assets. The federal government came up with a plus of 1.7 percent or 5.6 billion to 326.2 billion euros. This development is due in particular to an increase in the so-called “Bad Bank” FMS Wertmanagement AöR, the state-run liquidation company of the former Hypo Real Estate (HRE). The municipalities recorded an increase of 2.6 percent to 209.9 billion euros. The social security reported an increase of 6.1 percent to 177.0 billion euros.

The financial assets of the federal states increased by 8.1 percent or 18.8 billion to 251.3 billion euros. However, the development in the individual federal states was very different. Bremen recorded the largest increase with 84.0 percent, followed by Mecklenburg-Western Pomerania (+17.5 percent) and Berlin (+15.1). “The strong increase in Bremen is mainly due to an increase in the cash collateral to be deposited for derivative transactions,” it said.

Declines were recorded in Lower Saxony (-28.4 percent) and Saarland (-2.8). “The development in Lower Saxony is due in particular to the sharp decline in the price of the Volkswagen share, which significantly reduced the value of the State of Lower Saxony’s investments,” explained the statisticians.

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