The German government plans to reduce the budget deficit by about 30 billion euros by 2013, according to the German newspaper Bild. “The state plans to reduce net liabilities by almost 30 billion euros by 2013,” the paper reported, citing sources close to the government.
In 2011 alone, nearly 12 billion euros in savings are planned, while the deficit is expected to be reduced by 10 billion and five billion euros in 2012 and 2013, respectively, Bild further writes. German finances, although in better shape than many in the eurozone, are seriously pressured by the global economic crisis and plans to revive economic activities. Last year, the budget deficit reached 3.3 percent of gross domestic product, and public debt rose to 73.2 percent of GDP, significantly above the 60 percent upper limit set by Brussels. Finance Minister Wolfgang Schauble announced last week that the planned reduction in spending would be “greater than strictly necessary.” (H)
