Germany: a budget anticipating harder times

On 25 November 2016, the Bundestag adopted a draft budget; for the fourth time in succession, Germany will not run a budget deficit. This will allow for a reduction in the public debt from 68% to 66% of GDP. The aim of the ruling coalition is, by the year 2020, to reduce the debt to below the limit of 60% of GDP as laid down in the Maastricht Treaty.

The German government’s priority is to increase expenditure on both domestic security and defence spending, the latter by €2 billion to €36.6 billion. The second objective is to resolve the problems connected to the migration crisis; in 2017 €19 billion were allocated to actions such as increasing the number of pending applications for asylum, German-language learning programmes, the development of social housing, and combating the causes of migration.

The Local.de, 13.01.17: How will Germany spend its €6 billion surplus? https://www.thelocal.de/20170113/how-will-germany-spend-its-6-billion-surplus

ESO: Background information: What to do with the budget surplus? http://www.europeansources.info/record/what-to-do-with-the-budget-surplus/

ESO: Background information: Schäuble proposes fewer taxes, more spending in 2017 budget http://www.europeansources.info/record/schauble-proposes-fewer-taxes-more-spending-in-2017-budget/

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