German government skips pay rise

1st September 2004, Comments 0 comments

2 September 2004 , BERLIN - The German government announced Wednesday that Chancellor Gerhard Schroeder, cabinet ministers and other senior officials will skip planned pay rises next year to help ease pressure on the strapped federal budget. "Those holding top offices in the government ... are making a soldiarity contribution through the move," said a statement. Cancelling the 4.4 percent salaray increase will save some EUR 800,000 million next year, said the statement. Germany has failed to get state spen

2 September 2004

BERLIN - The German government announced Wednesday that Chancellor Gerhard Schroeder, cabinet ministers and other senior officials will skip planned pay rises next year to help ease pressure on the strapped federal budget.

"Those holding top offices in the government ... are making a soldiarity contribution through the move," said a statement.

Cancelling the 4.4 percent salaray increase will save some EUR 800,000 million next year, said the statement.

Germany has failed to get state spending under control following three years of economic stagnation and Finance Minister Hans Eichel admitted earlier this week that Berlin would again overshoot the 3 percent of GDP budget deficit this year.

Germany will borrow new funds worth 3.7 percent of GDP in 2004, Eichel said. This will be the third year in a row that Germany violates the eurozone budget deficit rule.

DPA

Subject: German news

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