The negotiations were bitter at times. But finally on Wednesday, Germany's government presented its budget for 2009. The goal of a balanced budget by 2011 remains within sight despite a 5 percent increase in military spending.

 German Finance Minister Peer Steinbrück had difficulties putting together a budget this time around. Germany finally has a budget for 2009. After months of intra-government quarrelling, Chancellor Angela Merkel's cabinet on Wednesday agreed to a €288.4 billion ($454.7 billion) package that largely reflects Finance Minister Peer Steinbrück's continued insistence on frugality.

The total planned expenditures represent a 1.8 percent increase over the 2008 fiscal year and include just €10.5 billion in new loans. The goal is a balanced budget by 2011, which would be the first time since 1969 that Germany's expenditures did not exceed its revenues. Tax revenues for 2008 are expected to be €248.7 billion.

"I think that staying on the path towards a balanced budget is an important indication of this government's competence, assertiveness and capacity to act," said Steinbrück in a breakfast television interview on ZDF.