German chancellor Gerhard Schroeder will seek a green light at this week's EU Summit in Greece for Germany to again overshoot the eurozone budget deficit limit in 2004, Der Spiegel magazine reported without citing sources. Der Spiegel said Schroeder will use the EU Summit in Thessaloniki, this weekend, to "feel out" other heads of state on whether they would be willing to tolerate yet another overshoot in 2004.
The magazine said European Commission president Romano Prodi has already signalled his goodwill on the issue. The move comes as German economic stagnation pushes the government to consider bringing forward tax cuts planned for 2005 by a year in order to boost sagging domestic demand. If implemented this would yield an 18bn euro tax cut from January 1, 2004, in addition to an already planned 7bn euro tax cut already planned for next year. A final decision on whether to bring forward the tax cut is due at the end of the month. //www.fxcentre.com