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Fear of Bloated Budget Deficit: Germany May Limit New Stimulus Program to €25 Billion - SPIEGEL ONLINE - News - International

The news, if confirmed, may irk Germany's neighbors in Europe. Newspapers are claiming the second economic stimulus package due to be unveiled next month will total just €25 billion rather than the originally planned €40 billion because Germany doesn't want to give other nations an excuse to breach deficit rules.

 Clouds loom over the port of Hamburg: Germany's giant economy is expected to fall into recession next year.

Germany's second economic stimulus package due to be unveiled in January will be far smaller than initially discussed because the government doesn't want to give other European Union countries an excuse to break EU deficit rules, two German newspapers reported on Wednesday.

Reports in Süddeutsche Zeitung and Frankfurter Rundschau said the new program to avert recession would amount to €25 billion ($34.9 billion) compared with the figure of €40 billion initially discussed.

The finance minister of the regional state of Rhineland-Palatinate, Ingolf Deubel, confirmed the figure of €25 billion in an interview with the Rhein-Zeitung newspaper following a meeting of regional government representatives with Chancellor Angela Merkel's chief of staff, Thomas de Mazière, in Berlin on Tuesday.

by Fran (fran at eurotrib dot com) on Wed Dec 24th, 2008 at 03:25:44 PM EST
[ Parent ]
Clouds loom over the port of Hamburg

don't worry, Crazy Horse isn't far way.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Dec 24th, 2008 at 05:57:00 PM EST
[ Parent ]

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