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Global crisis: Germany to cut public expenditure from 2011

The German government will use less money in public expenditure from 2011 due to the global crisis, Finance Minister Wolfgang Schuble said.



Berlin: The German government will
use less money in public expenditure from 2011 due to the
global crisis, Finance Minister Wolfgang Schuble said.

The Minister pointed out in a press release that this
measure would affect the systems of state services.

In order to ensure what is established by the European
and the German law about the limitation of the public
expenditure the German government should provide in the next
five years saving packages of 10 billion euros every year,
according to specialists.

The Federal Statistical Office recently announced that
the economy decreased 5 per cent in 2009 in the middle of the
worst recession since the end of the World War II.

The German Institute for Economic Research (DIW)
estimated that inflation will remain low between 1.2 per cent
this year and 1 per cent next one. The specialist said that
effects of the recession mainly hit the unemployment
rate, domestic consumption and lower exports.

PTI

From Zee News

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