Brussels, 24/03/2016 (Agence Europe) - On Wednesday 23 March, the German government presented a balanced draft budget for 2017, which forecasts increased expenditure, to be offset by revenue.
As 2017 is an election year in Germany, the draft budget satisfies all three parties forming the government coalition. The Christian Democrat party, CDU, underlines its compliance with the commitment to maintain a balanced budget requiring no new debt to be contracted and increased expenditure, related to security. The Bavarian Social Christian party, CSU, highlights the increase in investment expenditure (€33.7 billion). The Social Democrat party, SPD, prides itself on having secured a substantial increase in pension levels (between 4% and 6%). An envelope of €10 billion will be used to integrate around 1 million refugees present in Germany.
Between now and 2020, German public expenditure will increase in line with the following trajectory: €316.9 billion in 2016, €325.5 billion in 2017, €326.3 billion in 2018, €342.1 billion in 2019 and €347.8 billion in 2020. The draft German budget for 2017 will be adopted in early July.
According to the European Commission's winter forecasts, the budgetary surplus in Germany will stand in 2016 at 0.1% of GDP, following a level of 0.5% in 2015, and growth will stand 1.8% of GDP in 2016, following a level of 1.7% in 2015. Unemployment will affect just 4.9% of the active population this year. (Original version in French by Mathieu Bion)