Parliament passes controversial 2005 budget

26th November 2004, Comments 0 comments

26 November 2004, BERLIN - Germany's lower house of parliament, the Bundestag, passed the government's 2005 budget on Friday - but opposition parties said they would be launching a Constitutional Court challenge. The budget was carried by the Social Democrats-Greens coalition majority after a four-day debate in which Finance Minister Hans Eichel Tuesday outlined overall spending of EUR 254.3 billion. However the opposition centre-right Christian Democrats (CDU) and liberal Free Democrats announced they wou

26 November 2004

BERLIN - Germany's lower house of parliament, the Bundestag, passed the government's 2005 budget on Friday - but opposition parties said they would be launching a Constitutional Court challenge.

The budget was carried by the Social Democrats-Greens coalition majority after a four-day debate in which Finance Minister Hans Eichel Tuesday outlined overall spending of EUR 254.3 billion.

However the opposition centre-right Christian Democrats (CDU) and liberal Free Democrats announced they would be filing a complaint next month to the Constitutional Court in Karlsruhe.

CDU deputy Ronald Pofalla, who is to head economic affairs for the party's parliamentary group, said Eichel had "intentionally violated" the constitution.

During this week's debate Eichel said government's budget shortfall would be halved to EUR 22 billion from this year.

After three successive years in which Germany has breached the 3 percent deficit limit under euro stability pact rules, Eichel said the national budget deficit would be just under 3 percent of gross domestic product in 2005.

Privatisation plans in the budget to sell off more than EUR 17 billion worth of public assets and the near identical levels of the planned deficit and capital spending have spawned complaints the spending plan runs contrary to the constitution.

The Bundestag on Tuesday approved this year's supplementary budget of EUR 43.5 billion, a post-war record and well above investment volume.

DPA

Subject: German news 

 

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