Brussels, 02/09/2002 (Agence Europe) - Commissioner Michaele Schreyer said on the German television channel ZDF on Monday that the European Commission had not yet planned to propose that the Ecofin Council should give a warning to Germany regarding its public deficit, which could, however, exceed the GDP 3% mark.
The German Finance Minister said on Sunday that the information whereby the budgetary deficit would clearly exceed the 3% limit was premature. "The figures needed are not yet available and we are still gathering them and analysing the data", a spokesperson for the German Finance Ministry told Reuters. She also specified that the figures for the first half of the year would be available in September, while stressing that it would not be possible to draw conclusions for the whole of the year in so far as the government is tabling on renewed growth (0.75% of GDP) for the second term. According to the magazine Der Spiegel, the budgetary deficit of the first half of 2002 would amount to EUR 37 billion, i.e. 3.5% of GDP.
German Finance Minister Hans Eichel said he did not fear an official reprimand by the EU this year on budgetary discipline but did acknowledge the fact that the situation remained difficult. He insisted that Germany still planned to comply with the provisions of the Stability Pact despite additional spending that the State will have to make due to the damage caused by floods. Although weak growth is reflected in the fall in tax receipts, Mr Eichel said he expected receipts to increase with economic recovery. Edmund Stoiber, CDU/CSU candidate to the Chancellery, said for his part that a Conservative government would not undertake to balance the budget by 2004, despite promises made earlier by Germany to step up its efforts to come closer to this target. Chancellor Schröder's rival also said that he could not say in advance whether the country would, or not, be able to significantly reduce the budgetary effort in 2003.