Berlin plans big asset sell-off

21st June 2004, Comments 0 comments

21 June 2004 , BERLIN - German Chancellor Gerhard Schroeder's Social Democrat-led government is planning to sell assets worth EUR 15.4 billion next year in a bid to keep its budget deficit within the strict target for euro member states, according to German press reports.

21 June 2004

BERLIN - German Chancellor Gerhard Schroeder's Social Democrat-led government is planning to sell assets worth EUR 15.4 billion next year in a bid to keep its budget deficit within the strict target for euro member states, according to German press reports.

This would include sales of government stakes in telephone giant, Deutsche Telekom AG and the nation's postal service, Deutsche Post AG.

If successful, this would represent the first time in four years that Berlin has managed to meet the tough the three percent budget rule as set out in the Maastricht Treaty on European union.

This follows three years of economic stagnation with high joblessness pushing up the cost of unemployment along with falling tax revenue playing havoc with Germany's public finances.

The cabinet is scheduled to approve the draft budget Wednesday.

Planned German government spending in 2005 will total EUR 258.3 billion, up a scant 0.4 percent from the 2004 spending target, the Finance Ministry spokesman said Monday. Revenue from tax is projected to total EUR 194.5 billion and income from other sources is forecast at EUR 41.8 billion.

The draft budget also plans to restrict net new borrowing to EUR 22 billion, less than planned new investment of EUR 22.8 billion euros.

[Copyright Expatica News 2004]

Subject: German news

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