German national debt has grown to 80 per cent of economic output because of the financial and euro crisis. Over the next four years, Finance Minister Schäuble plans to reduce this considerably.
Translated from the German
The federal government wants to cut the German sovereign debt in the next four years, according to a report on the current economic and financial situation which is to be discussed in the Cabinet.
Within the next four years, a reduction of the debt ratio by ten percentage points to 68.5 per cent of economic output was realistic, the report states. However, the overall ratio will still remain above the agreed 60 per cent of the EU criteria. In the first quarter of 2013, the German debt was still over 80 per cent of GDP. But equally, during the first six months of 2013, the Federal Republic achieved a billion euro budget surplus.
The EU reference value of 60 per cent has been missed by Germany as by most other EU countries for years. However, according to the report, Germany will meet this target again in 2017, if one were to count out the contribution for the euro crisis funds.
The black-yellow government vows in the report to keep spending largely stable and further reduce the annual budget deficit. At the same time, the government warns of an expansionary fiscal policy as a means to overcome the crisis in the euro area. The Government was committed to Germany's responsibility for monetary union, the report confirmed.
Full article (in German)
© Frankfurter Allgemeine Zeitung
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