Germany aims to keep to EU deficit limit

14th June 2004, Comments 0 comments

14 June 2004, BERLIN - Despite deficit spending, the German government hopes to be able to meet European Union (EU) budgetary deficit guidelines in 2005, a government spokesman said.

14 June 2004

BERLIN - Despite deficit spending, the German government hopes to be able to meet European Union (EU) budgetary deficit guidelines in 2005, a government spokesman said.

Finance Minister Hans Eichel will put forward proposals to state and local finance officials this coming Wednesday for curbing the deficit, the spokesman said.

The spokesman declined to give specific figures but confirmed "the essential drift" of a report by news magazine Der Spiegel.

The report quotes sources close to Eichel as saying he hopes to reduce Germany's federal deficit to 3.0 percent of gross domestic product in 2005, in keeping with EU fiscal guidelines.

For the current fiscal year, however, Eichel expects the deficit to top 3.5 percent. But he foresees it falling to 2.0 percent in 2006 and 1.5 percent in 2007, the magazine reported.

DPA

Subject: German news

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