After weeks of internal debate, the German government agreed on a draft 2009 budget on Wednesday, July 12. The government expects to spend 288.4 billion euros ($456 billion) next year, a 5 billion euro increase. The proposed 2009 budget includes a modest 1.8 percent spending increase over this year. Germany's Finance Minister Peer Steinbrueck has been eager to keep new spending down in a bid to cut back on borrowing. Yet Steinbrueck and other cabinet members largely avoided proposing painful budget cuts that could put them on the defensive ahead of national elections which will likely be held in September 2009.
The proposed 2009 budget includes a modest 1.8 percent spending increase over this year. Germany's Finance Minister Peer Steinbrueck has been eager to keep new spending down in a bid to cut back on borrowing.
Yet Steinbrueck and other cabinet members largely avoided proposing painful budget cuts that could put them on the defensive ahead of national elections which will likely be held in September 2009.
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.
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.
Danke, Voll Daneben Bush, for making this world's priorities even more insane. "Life shrinks or expands in proportion to one's courage." - Anaïs Nin
