Buba's Weber says Germany should be more ambitious in reducing budget deficit |
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Mon, 16 Apr 2007 08:06
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FRANKFURT (Thomson Financial) - Bundesbank president Axel Weber said Germany should be more ambitious in setting its goals for reducing the country's budget deficit in 2007 and 2008, with a decline to 1 pct being achievable in 2007, according to an interview published in Frankfurter Allgemeine Zeitung.Weber criticised the government's plans to achieve a budget deficit of 1.2 pct of GDP this year and next year, stating 'a decline to 1 pct can be managed this year. A further consolidation of 0.5 pct of GDP should ensue in 2008,' he told the newspaper.'The reform of Germany's corporate tax is no reason to ease up on the reduction of the budget deficit,' he said.Germany is currently in a historical cyclical recovery phase, according to Weber, and an upward revision of the Bundesbank's 2 pct GDP growth forecast is possible, the newspaper wrote.Weber said he is not concerned a slowdown in the US economy or rising oil prices may hurt Germany's economy.'Dynamic markets such as China and Saudi Arabia are gaining importance for the German industry,' he said, adding that a drastic economic slowdown in the US economy is unlikely.And rising oil prices have been almost completely absorbed by a strengthening of the euro against the dollar, Weber said.patrizia.kokot@thomson.compk/mas/lamCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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