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

Bank DnB NORD increases its holdings in Lithuania

Bank DnB NORD A/S increasing its holdings in its Lithuanian subsidiary to 99.84 percent through acquisition of shares from minority shareholders. more »

AB Bank SNORAS will grant LTL 35 million for financing small and medium businesses

AB Bank SNORAS will grant LTL 35 million for financing the small and medium businesses on the exclusive conditions. more »

Obama rejects GM, Chrysler plans

Rejecting survival plans from both General Motors and Chrysler, President Barack Obama warned the ailing US automakers they could be forced into bankruptcy if they don't find a way to slash their debt. more »

Beer still recession proof?

Prevailing wisdom says when the going gets tough the weary go drinking. The demand for beer exceeds the demand for all other alcoholic beverages in USA. more »

Watchmakers want better times

Things have been moving slowly for Swiss watchmakers in recent months. The global economic downturn has hit the country's third most important industry hard. more »

GM CEO resigns

The move came a day before the U.S. government was due to outline new steps to help GM and Chrysler as part of the federal bailout. more »

Creativity key to a healthy economy

With the European year of creativity and innovation in full swing, leading figures warn against cutting back on research and development in times of crisis. more »

Markets rebound on better data

Wall Street has been looking for signs of a bullish comeback, and today's surprise news on the economic front revived a buying spree... started by Monday's 7% rally. more »

Five countries exceeding EU deficit limits

With the economic crisis eating away at public finances, budget deficits in five countries are expected to exceed the 3% of gross domestic product allowed by the EU. more »

China calls for new global currency

China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis. more »