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German Finance Minister Denies Report On New 2011 Borrowing

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http://uk.reuters.com/article/idUKTRE65B13820100612

Germany's Finance Ministry on Saturday denied a media report that federal net new borrowing would be around 60 billion euros next year.

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German weekly Der Spiegel reported that net new borrowing would total around 170 billion euros ($204.6 billion) over the next four years, citing an alleged internal finance ministry document.

"Reports about the level of new federal borrowing from next year are speculation," said Finance Ministry spokesman Michael Offer in a statement. "The numbers mentioned there are wrong."

Der Spiegel wrote that borrowing would fall to 47 billion euros in 2012, to 36 billion in 2013 and to 29 billion in 2014.

"The draft of the federal budget for 2011 and the new medium-term finance planning until 2013 are currently being worked out, taking into consideration the results of the savings package," said Offer.

"The level of new borrowing until 2014 will only be fixed from July 7, the day of the cabinet decision," he added.

Chancellor Angela Merkel's coalition on Monday agreed a package of budget cuts and taxes to bring the federal structural deficit within European Union limits by 2013 -- measures being touted as Germany's biggest austerity drive since World War Two.

Finance Minister Wolfgang Schaeuble said on Wednesday that net new borrowing would likely be around 65 billion euros this year, well below a previous estimate of around 80 billion euros.

Are the sums needed what Germany has pledged to bail Greece out with?

Still it appears that the Germans are following Darling by over estimating how much they need to borrow so it can be good news when they announce it's less. Everyone feels better and the people feel relieved that fiscal prudence is the name of the game.

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http://uk.reuters.com/article/idUKTRE65B13820100612

Are the sums needed what Germany has pledged to bail Greece out with?

Still it appears that the Germans are following Darling by over estimating how much they need to borrow so it can be good news when they announce it's less. Everyone feels better and the people feel relieved that fiscal prudence is the name of the game.

Besides, Der Spiegel kept writing "federal" budget/borrowing, etc. Germany is much more decentralised than the UK. They have states there, and they may be allowed to borrow too. We should not jump to conclusions. Though Germany is undoubtedly in a much better situation than us.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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