Ecofin told to nag Germany

Date: 02/03/06

European Economic and Monetary Affairs Commissioner Joaquín Almunia has urged Europe’s finance ministers to step up pressure on Germany to cut its budgetary deficit.

Berlin aims to cut its deficit - which stood at 3.3% of gross domestic product (GDP) in 2005 - to 2.5% in 2007, but Almunia warned that social spending cuts would have to be guaranteed if the budget were not to slide again after 2007.

Ministers will decide under the stability and growth pact whether to demand that Germany adhere to the 2007 deadline, although under the revised pact they can no longer threaten sanctions if Berlin does not comply.

Article reports that European Economic and Monetary Affairs Commissioner Joaquín Almunia urged EU Finance Ministers to step up pressure on Germany to cut its budgetary deficit.