Case against German EU deficit could proceed

12th July 2005, Comments 0 comments

12 July 2005, BRUSSELS - The European Union Commission is considering whether to proceed with a case against the German deficit, which threatens to exceed debt limits set by the European currency union, a spokesman said late Monday.

12 July 2005

BRUSSELS - The European Union Commission is considering whether to proceed with a case against the German deficit, which threatens to exceed debt limits set by the European currency union, a spokesman said late Monday.

Joaquin Almunia, who met with the group, said that a final decision would be taken after the latest German fiscal statistics are released by the German government in September.

There is little doubt that Berlin will exceed the limits through to 2007. Under the currency union agreement, member countries must keep their annual deficit below 3 per cent of gross domestic product.

If the figures in September are worse, Berlin would have to pursue sharp budget cutbacks or face penalties from Brussels.

DPA

Subject: German news

0 Comments To This Article