On 6 July, the government presented the budget plan for 2012. According to the document, the government estimates that the fiscal deficit will sink below 2.0% of GDP this year, down from the 3.3% of GDP seen in 2010 and well below the 3.0% of GDP deficit ceiling stipulated in the Maastricht treaty. For 2012, the government expects that the fiscal deficit will shrink further to 1.2% GDP. The country's public finances profit form strong economic growth, which is boosting tax revenues well above the planned levels. The government plans to seize the opportunity of higher income and considers reducing taxes for low and middle-income households before the country's 2013 general election. However, the plans met resistance even from within the government coalition parties, as the tax cuts may jeopardize the target of reaching a balanced budget by 2016, a requirement that was anchored in the constitution in 2009. Critics to the tax cuts claim that the government will have to stem a host of new costs, including an annual contribution of EUR 4.3 billion over a five-year period to the European Stability Mechanism (ESM), the European Union's permanent bailout mechanism.
Government presents 2012 budget draft
July 28, 2011
Looking for forecasts related to GDP in Germany? Download a sample report now.
Germany Economic News
October 10, 2016
The seasonally- and calendar-adjusted trade surplus increased from EUR 19.4 billion in July to EUR 22.2 billion in August, driven up by recovering exports.
October 7, 2016
In August, industrial production rose 2.5% from the previous month in seasonally-adjusted terms, in contrast to July’s large 1.6% drop, which had been the lowest reading in nearly two years.
September 29, 2016
Consumer prices in September rose 0.1% in a month-on-month comparison, according to preliminary data released by the Federal Statistics Office (Destatis) on 29 September.
September 28, 2016
Heading into October, the mood among German consumers weakened slightly but still stayed at a high level.
September 26, 2016
German businesses turned much more optimistic in September.