Germany: a budget anticipating harder times

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Series Details 30.11.16
Publication Date 30/11/2016
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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.

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The, 13.01.17: How will Germany spend its €6 billion surplus?
ESO: Background information: What to do with the budget surplus?
ESO: Background information: Schäuble proposes fewer taxes, more spending in 2017 budget

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