Brussels, 03/07/2014 (Agence Europe) - On Wednesday 2 July, the German government unveiled a draft budget for 2015 in which federal public finances will be balanced for the first time since 1969.
The German federal state will not need to borrow any money until 2018. The size of the federal budget is expected to rise from €299.5 billion in 2015 to €329.3 billion in 2018.
The country has ambitious debt reduction targets, from 78% of GDP in 2013 to 76% in 2014 below 70% by 2017 and below 60% of GDP, the upper limit set out in the stability and growth pact, in a decade.
The German economy is doing well and, in the Spring Economic Forecasts, the European Commission said German GDP would grow by 1.8% in 2014 and, ceteris paribus, by 2% in 2015. Unemployment is expected to remain very low at 5.5% of the working population.
There are people in Germany and Europe calling on the German government to introduce a minimum wage, boost household spending and invest in deteriorating transport infrastructure. (MB)