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

Cutting red tape on VAT

Business to get a break under streamlined EU VAT rules. more »

Thales names propulsion sub-contractor for Lithuanian minehunter reactivation programme

Thales UK`s naval business has yesterday signed a major sub-contract with Finning (UK) Ltd for the supply of propulsion engines and machinery for its new Lithuanian warship reactivation programme. more »

A €116 billion question: making sense of the 2009 EU budget

The EU Budget 2009 provides more money for growth, the environment, jobs, research and food aid for developing countries. more »

Davos 2009: Gloom after boom

On day one of the World Economic Forum in Davos, the mood of this traditionally bullish event -- pure gloom. more »

Turnover of retail trade enterprises

In December 2008 against December 2007 the turnover of retail trade enterprises decreased by 8.8 per cent. more »

Wincor Nixdorf signs ATM service deal for 4,000 ATMs in Mexico

Mexican financial institution Banco Santander has awarded Wincor Nixdorf AG a contract to service all 4,000 of its ATMs installed in Mexico. more »

Wincor Nixdorf says ATM innovation, automation and outsourcing will be way of future

Wincor Nixdorf AG spent much of its time at this year's Wincor World demonstrating how Wincor Nixdorf can support financial institutions and retailers through innovation. more »

Betting on better times

South Korea may be feeling the chill wind of recession but the country's lucrative gambling industry is cashing in. more »

Microsoft Reports Second-Quarter Results

Modest revenue growth despite difficult economy; announces cost management initiatives. more »

Migrant workers hit by credit crunch

Tens of thousands of export firms on China's seaboard have closed due to falling demand in major European and North American markets. more »