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

“Business Ambassador 2008” nomination established this year was awarded to V. Ušackas

AB Bank SNORAS, being the patron of the “Partnership Leader” nomination of the International trading palace ICC Lietuva (hereinafter - ICC Lietuva), this year initiated a special prize - “Business Ambassador”. more »

New report says ATM consolidation will continue, ATM transaction volumes will rise

Tremont Capital Group, an ATM-industry consultancy that works closely with the ATM Industry Association, has released its 2009 ATM Industry Fact Sheet, which summarizes the history and current state of the ATM industry. more »

UniCredit is “Best Trade Finance Provider 2009” in CEE, Austria and Poland and “Best Bank for Payments & Collections in CEE 2009”

The renowned magazine “Global Finance” has named the UniCredit Group as the “Best Trade Finance Provider 2009” in CEE, Austria and Poland as well as “Best Bank for Payments & Collections in CEE 2009”. more »

During last year AB Bank SNORAS group earned LTL 41.7 million profit

AB Bank SNORAS group, which comprises AB Bank SNORAS, AB “Latvijas Krājbanka” operating in Latvia and 19 other companies, during last year, according to unaudited data, earned LTL 41.7 million profit. more »

Parex banka to expand relationship with American Express

At a meeting this week, Nils Melngailis, the Chairman of Parex banka, and Alex M Furber, American Express Vice President in Central and Eastern Europe, agreed to explore further options for co-operation. more »

DnB NORD Bankas’ strategic initiative - to become financial guide to its customers

The country’s residents wish to have a clear understanding of financial services they use and are ready to make their final decision only when the advantages or disadvantages of each option is evident to them. more »

Thales selects degaussing specialists for Lithuanian minehunter contrac

Thales UK`s naval business recently announced the signature of an important sub-contract with Swedish company Polyamp AB for the supply of mine warfare degaussing systems for its new Lithuanian warship reactivation programme. more »

Stanford clients swarm banks

Hundreds of anxious depositors are rushing to pull out their money from banks affiliated with the Texas billionaire Allen Stanford accused of fraud. more »

MEPs set to back VAT cut for everyday items

VAT cuts for things like household repairs, care services, audio books and beauty treatments are likely to be backed by MEPs on Thursday. more »

MEPs set to back international whaling ban

MEPs are calling for tough new measures to be taken against whaling. more »