Germany's Finance Minister Hans Eichel today insisted that Germany would ensure its budget deficit next year came in below 3pc of GDP He also said he would "stick to plans" to cut taxes further in 2004. In a speech in Parliament presenting the draft law on the 2002 supplementary budget and the proposed 2003 budget, Eichel said "despite the difficult situation" in the economy, Germany remains committed to its goal to have a balanced budget by 2006. Next year, he added, "all efforts will be made so that we are again below 3pc" of the GDP, as laid out in the criteria of the EU stability and growth pact. Germany's deficit this year will breach the 3pc criteria and is estimated to be around 3.75pc of GDP.
However, European Central Bank (ECB) president Wim Duisenberg has expressed concern the German government's austerity package will not be enough to prevent the country's budget deficit again exceeding the EU's 3pc of GDP limit next year. //www.fxcentre.com