Germany Defies Calls For Stimulus

Photo Credit: European University Institute

Germany has ignored calls from its eurozone partners for more economic stimulus by tabling plans to cut spending and balance its budget ahead of schedule on the eve of an EU summit dedicated to growth.

Wolfgang Schäuble, German finance minister, said on Wednesday that his budget for 2014, involving spending cuts of more than €5bn to trim the total below €300bn, was “a strong signal for Europe”.

The plan means Germany will reach budget balance in 2015, a year earlier than required under the “debt brake” written into its constitution.

He described the 2014 spending plan as “growth-friendly consolidation”, intended to prove to the rest of the eurozone that “consistent sustainable budgeting and growth are not mutually exclusive”. Philipp Rösler, economy minister, said Germany’s public finances were the “envy of the world”.

Publication of the budget was deliberately brought forward by a week to bring out the figures before the EU summit, according to German officials. In spite of tough cuts for health, social security and environment, the plan was rushed through the cabinet well ahead of schedule.

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  • Maybe Germany can send “a strong signal” to USA! CUT SPENDING, BALANCE BUDGET!

  • daninfla

    WHOA, HOLD ON,WAIT A MINUTE!
    Maybe y’all don’t UNDERSTAND, if we don’t spend the money we don’t have, let alone the money we DO have, the whole house of cards called “socialism” collapses!

  • BenDoubleCrossed

    Good for them. It is nice to know there is still a country in the world with common sense.