SHARE
COPY LINK

TAX

State to borrow less than feared in 2011

Germany's relatively rapid economic recovery means that the government will have to borrow significantly less than expected in the coming year, a newspaper reported Saturday.

State to borrow less than feared in 2011
Photo: DPA

The German state’s new debt in 2011 will be around €44 or €45 billion, rather than the €57.5 billion previously feared, according to a report in Saturday’s Bild newspaper.

Quoting unnamed government politicians, the newspaper said that this significant reduction in projected debt was the result of a higher tax income and reduced interest payments.

The report also suggested that the government might not have to pay the €2-billion injection into the state health insurance system.

The Finance Ministry has already said the new debt for this year will be reduced to between €50 and €55 billion instead of €80.2 billion.

The news is likely to start a new debate on tax reductions within the coalition government, which is made up of the pro-business Free Democratic Party and the conservative Christian Democratic Union.

DPA/bk

Related Topics

TAX

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.