Germany May Flout EU Budget Rules Again

Published: 28 August 2005 y., Sunday

The German budget deficit amounted to 3.6 percent of gross domestic product in the first half of the year, raising the specter of the country, a repeat offender, flouting EU stability pact rules yet again. The Federal Statistics Office in Wiesbaden said Tuesday that Germany's public deficit amounted to 36 billion euros ($44.0732 billion) or 3.6 percent of gross domestic product in the first half of the year.  

The figure was significantly lower than the 4 percent recorded in the same period last year, largely due to a stronger rise in revenues as compared to spending in the first six months of the year, according to the statistics office. 

Despite the slight relief provided by the figures in a country whose economy has been near-stagnant in past years and is currently battling an unemployment rate of close to 11.5 percent, financial authorities have warned that Germany is still in hot water when it comes to attracting the attention of watchdogs in Brussels.  

The European Union's Stability and Growth Pact, which underpins the euro, stipulates that eurozone members' public deficit cannot exceed 3 percent of gross domestic product.

 Germany, one of the prime architects of the pact, has breached the stability pact rules for the last three years in a row. Last year it posted a deficit of 3.7 percent. The pact has thus been at the center of a row between Germany and the EU Commission for years. The commission has accused Germany of not doing enough to set its financial house in order and consolidate its policies.

Šaltinis: dw-world.de
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

"The ocean of tomorrow": €34 million dedicated to multidisciplinary research projects to reconcile maritime activities with the preservation of seas and oceans

The European Commission launched "The ocean of tomorrow " call for research proposals. Oceans cover about 70% of the Earth's surface, but human activity is increasing environmental pressure on them. more »

Georgian businesses get additional access to finance

The EBRD is stepping up its support to the real economy in Georgia with new funds for on-lending to local businesses. more »

Lithuania's Ambassador to Germany discussed how to renew the crediting of the export of goods to Lithuania

Lithuania’s Ambassador to Germany and Special Representative for EU External Relations in the German Foreign Office discussed the situation regarding the decision of private credit insurance company in Germany Euler Hermes to apply the rating of a maximum risk country for Lithuania. more »

Parex banka signs subordinated debt agreement with the EBRD

Peter Reiniger Business Group Director for Central Europe and the Western Balkans from the European Bank for Reconstruction and Development visited Latvia to sign subordinated loan agreement with Parex banka. more »

28 million EU support for the promotion of agricultural products

The European Commission has approved 16 programmes in 12 Member States to provide information on and to promote agricultural products in the European Union. more »

Support for struggling dairy industry

New measures to help farmers through recession as milk prices tumble. more »

Bernanke sees economic signs of life

Federal Reserve Chairman Ben Bernanke said the outlook for the long-suffering U.S. economy appears to be improving. more »

International support to modernize water sector in Kyrgyzstan

The Swiss Government and the EBRD are providing €11.8 million to improve the supply of water to some 1 million people living in Bishkek, the capital of the Kyrgyz Republic. more »

The European Commission allocates €70 million for key investment projects in the EU’s Neighbourhood

The Neighbourhood Investment Facility (NIF), a key instrument of the intensified European Neighbourhood Policy (ENP), will benefit in 2009 from a €70 million contribution by the European Commission. more »

EBRD supports construction sector in Romania

In response to the impact of the global crisis on the Romanian construction sector, the EBRD is supporting Lafarge Ciment (Romania) S.A. with a €20 million loan in Romanian lei to finance the company’s operations and to support its working capital requirements. more »