Germany Balances Budget, First Since 1969
World Economy

Germany Balances Budget, First Since 1969

The German government managed to balance its books for the first time since 1969 in 2014 and a year ahead of target, the finance ministry said Tuesday.  
Originally, the government had been penciling in a small budget deficit of 6.5 billion euros ($7.7 billion) for 2014, AFP reported.
But thanks to higher tax revenues and lower interest rate payments on its debt, Berlin has now managed to finish the year without any net new borrowings, achieving Finance Minister Wolfgang Schaeuble’s long-cherished goal of a “black zero” on its accounts ahead of target.
Schaeuble had pledged to achieve that goal in 2015 and for a balanced budget to become the norm for Germany.
Budgetary rigor was one of the issues which the conservatives under Angela Merkel campaigned on in the 2013 elections.
But the opposition parties and many economists believe the “black zero” is being fetishised and actually makes no economic sense because it curbs much-needed investment in growth.
Taking the federal budget as well as the regional state and municipal budgets as well, Europe’s biggest economy already achieved balanced its books in 2012.
In terms of overall debt, Germany is still in breach of the European ceiling of 60 percent of gross domestic product (GDP).  At the end of 2013, the country’s overall debt amounted to 2.15 trillion euros, equivalent to 78 percent of GDP.
Schaeuble hopes to bring the debt ratio down below 60 percent by 2024.


Short URL : http://goo.gl/zl07zc

You can also read ...

South Korea Economy Facing Downside Risks
The South Korean economy will face some downside risks going...
Diesel Emissions Scandal a Risk to German Economy
The emissions scandal ensnaring German carmakers is a risk to...
Marlo Draghi (L) and Janet Yellen at the Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming on January 7.
Stock markets have spent the year rising on bets of a...
Deals outside Turkey are much cheaper and better  than Turkish opportunities.
Robert Yuksel Yildirim had barely been at the family’s...
The London Metal Exchange
World stocks struggled at a 5-1/2-week low on Monday, though...
Madura Says Will Tackle Inflation
The Venezuelan government’s toughest challenge is fighting...
Greek Current A/C Surplus Shrinks
Greece’s current account surplus shrank in June compared to...
Thai Q2 GDP Surprises With 3.7% Rise
Thailand’s economy continued its recovery in the second...