Germany expects smaller public deficit for 2012
Germany expects its public deficit for 2012 to be lower than earlier forecast, but aid to fellow euro countries will have an impact in the coming years, according to an official document released Sunday.
The deficit for 2012 is expected to reach 27.2 billion euros ($38.8 billion) according to a draft finance bill, obtained by AFP, which will be discussed by cabinet this week.
In March, the finance ministry suggested next year's deficit would total 31.5 billion euros.
But the cost of helping bail-out debt-strapped members of the eurozone, including Greece, will mean a slower than anticipated drop in the deficit over the following years, according to the document.
It forecasts a deficit of 24.9 billion euros in 2013, 18.7 billion in 2014, and 14.7 billion in 2015.
In March, the finance ministry had predicted a deficit of 22.3 billion in 2013, 15.3 billion in 2014 and 13.3 billion in 2015.
The main extra expense is linked to the setting up of a permanent eurozone stabilisation mechanism to which Germany will contribute 4.3 billion euros per year.
© 2011 AFP