Germany's cabinet on Wednesday approved budget plans that foresee the federal government taking on no net new debt through to 2022 and investment rising this year and next before falling.

"I am convinced: in good economic times, a responsible fiscal policy must achieve both a reduction in debts and a rise in investments," Finance Minister Olaf Scholz said in a statement.

Investment would rise from €34 billion last year to €37 billion this year and €37.9 billion in 2019, before decreasing to €33.5 billion in 2022, Finance Ministry fiscal plans approved by the cabinet showed.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.