Global crisis: Germany to cut public expenditure from 2011
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Last Updated: Thursday, January 21, 2010, 13:52
  
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


First Published: Thursday, January 21, 2010, 13:52


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