Brussels, 01/03/2004 (Agence Europe) - Germany and France have recently submitted their public deficit forecasts to the European Commission. The figures have been reviewed upwards slightly, but are unlikely at this stage to compromise the commitments taken by either country at European level, which involve bringing their deficits below the reference value of 3% of GDP in 2005.
Germany is predicting a public deficit of 3.3% of GDP in 2004, as opposed to 3.25% in the previous estimations. Its deficit will thus remain above the 3% laid down in the Stability Pact for the third year running (3.9% in 2003 and 3.5% of GDP in 2002). Berlin has confirmed its willingness to bring the deficit below 3% in 2005 and, according to German weekly Der Spiegel, Finance Minister Hans Eichel has asked his government colleagues for two billion EUR in additional saving to ensure that they fall in line with the Stability and Growth Pact in 2005. The Ecofin Council will give its opinion on Germany's updated stability programme on 9 March, on the basis of the European Commission's comments (see EUROPE of 19 February, p.10).
According to French daily La Tribune, France's deficit for 2003 is likely to be 4.1% of GDP, or slightly higher than the last official estimation by the government. At the end of last January, the French Finance Minister acknowledged that there was "a notable risk" that the deficit would be exceeded beyond the 4% previously forecast.