Berlin on to make EU budget balance target

Germany will meet EU rules on public spending in 2006, Berlin’s finance minister confirmed on Monday.

Berlin has announced it will fulfill budget deficit criteria of the EU’s Stability and Growth Pact this year, one year earlier than expected.

Finance minister Peer Steinbrück signalled that Brussels could count on a German deficit of 2.8 per cent of GDP in 2006 – under an EU ceiling of three per cent.

"It is probable a two will proceed the decimal point,” Steinbrück said.

Berlin has breached the three per cent target four times since 2001, the current economic upswing in Germany and a resulting increase in tax incomes is helping Berlin balance the books.

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