The German government has decided to reduce the volume of government bonds issue. According to the new statement, the authorities have significantly cut the scheduled volumes of government bonds issues in the coming year. Statistics shows that this is the lowest level in 13 years. The decision to reduce the volume of external borrowings is primarily explained by the necessity of working on the government's plan of the balanced budget implementation. Considering the fact that next year there will be no need in the reserved funds for covering the budget deficit in Germany, the decision was made to spend all money to refinance or repayment of old debts. The federal authorities intend to replenish medium- and long-term government bonds and notes in amount of €147 billion and short-term instruments worth €38.5 billion. In the first quarter of the next year, Germany intends to solicit about €49.5 billion on the debt markets. During the last seven sessions, prices for the German government bonds have been increasing, as they are in demand as a safe haven. Recently, German Chancellor Angela Merkel has set the task to the government "not to leave the mountains of debts for future generations." It is worth noting that Angela Merkel is an influential figure and a reputed agent between the East and West. Merkel is the most prominent European politician, the most powerful woman in the world and the person of the year in 2014 according to The Times.
