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

Finnish Started Business with 2 Lithuanian Print Houses

One of the biggest Finnish introducing broker companies Finnprinters, connecting customers and printing houses, has started joint business projects with Lithuania’s 2 printing houses. more »

In I quarter 2009, based on the labour force survey data, theunemployment rate in the country reached 11.9 per cent

Statistics Lithuania informs that, based on the Labour Force Survey (LFS) data, the unemployment rate in I quarter 2009 reached 11.9 per cent, i.e. was close to the level of the year 2004. Over a quarter, the unemployment rate grew 1.5 times, over a year – 2.4 times. more »

Lithuania's foreign minister encourages to unite efforts for a swifter implementation of the Rail Baltica project

Lithuania’s Acting Minister of Foreign Affairs Vygaudas Ušackas discussed ways of accelerating the implementation of Rail Baltica in the current economic environment and attracting foreign investments for the implementation of this project. more »

Gearing up for gas emergencies

Proposals for transparency and monitoring to keep gas flowing to the EU. more »

Another economic stimulus?

On a day in which G8 leaders in Italy said the world economy still faces "significant risks," a top White House official said the Obama administration is not discussing a second stimulus plan. more »

Microfinance for Europe's unemployed

EU proposes microfinance facility to encourage the unemployed to start their own businesses. more »

Wonky fruit & vegetables make a comeback!

For those of you who like your fruit and vegetables to look as crooked, knobbly and curvy as possible 1 July was a good day. more »

Disney eyes Hong Kong expansion

Walt Disney will invest almost half a billion U.S. dollars into its Hong Kong Disneyland, to bolster the park's prospects against a planned rival in Shanghai. more »

For the first time in Lithuania two investment funds are merged

On 26 June 2009 Securities Commission (SC) approved the merge of investment funds controlled by UAB SNORAS Asset Management with SNORAS Global Equity Funds of Funds (SGEFF) by joining JT Baltic Equity Fund I. more »

DnB NORD Bankas revises deposit rates

Taking into account changes on international and domestic money markets AB DnB NORD Bankas, a member of international financial group, has changed time deposit rates for individual customers. more »