the German government has taken The fifth year in a row, more money than is spent. The Federal government, Länder, municipalities and social insurance achieved a record surplus of 58 billion euros. This was, however, lower than expected.
The German state has achieved despite the economic slowdown in the past year, a record surplus. The Federal government, Länder, municipalities and social funds took in 2018, below the line, the 58 billion euros more than they spent, how the Federal statistics office. In a first estimate, the authority was assumed to be 59.2 billion euros. Based on the economic performance, the increase was 1.7 percent. The Treasury benefited from increasing tax revenues and social contributions, also thanks to the historically good position on the labour market.
Far away from the deficit-limit
Germany is the fifth year in a row, a Surplus, and is thus a far cry from the deficit limit of the Maastricht Treaty. The Europeans allow a maximum of a budget deficit of 3.0 percent of economic output. A – albeit minimal – Minus was recorded in Germany last 2013.
Also, especially in Germany, the controversial ultra-loose monetary policy of the European Central Bank (ECB) provides for relief. Because of the low interest rates may be the fault of the state cheaper. Because of the downturn in the economic situation of a 25-billion hole in the budget by 2023, threatening the Federal government, however. The Finance Ministry expects around five billion euros less in tax revenue per year.
in Europe’s largest economy had lost in the second half of the year 2018 at pace. After the gross domestic product (GDP) shrank in the third quarter to 0.2 per cent quarter-on-quarter, stagnated it to the end of the year, such as the Wiesbaden-based Agency confirmed on a first estimate.
