Lower German budget deficit is 'very good news'

22nd February 2006, Comments 0 comments

22 February 2006, BRUSSELS - European Union monetary affairs chief Joaquin Almunia on Wednesday said the reduction in Germany's budget deficit in 2005 to 3.3 per cent of Gross Domestic Product (GDP) was "very good news."

22 February 2006

BRUSSELS - European Union monetary affairs chief Joaquin Almunia on Wednesday said the reduction in Germany's budget deficit in 2005 to 3.3 per cent of Gross Domestic Product (GDP) was "very good news."

"This is very positive," Almunia told reporters, adding that the German figures were even better than expected.

The EU monetary affairs chief was commenting on figures from the Federal Statistics Office in Wiesbaden showing that the German budget deficit last year stood at 3.3 per cent of GDP, lower than the office's projection of 3.5 per cent.

While the figure is higher than the 3 per cent of GDP threshold set by the EU stability pact, officials in Brussels said the decline in the deficit level showed that Germany was trying hard to comply with EU rules.

Germany, along with France and several other eurozone states, is currently in breach of the EU's excessive deficit rules.

The Commission will study the new German budget next week and decide on future action against Berlin.

DPA

Subject: German news

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