BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble aims to
book the proceeds of E4.4 billion from the auction of UMTS licenses into
next year’s budget in order to ease the pressure for consolidation,
German daily Bild reported Thursday.
The government has vowed to cut the federal structural deficit by
E10 billion each year from 2011 in order to bring the deficit down to
0.35% of GDP by 2016, as required under the country’s debt limitation
rule.
By shifting this year’s UMTS proceeds to 2011, Schaeuble would need
to cut the deficit by only around E6 billion next year, Bild wrote.
Federal net new borrowing this year will likely stay below the
E80.2 billion projected in the 2010 budget bill, Schaeuble said on
Wednesday.
Due to lower-than-expected unemployment “a lot speaks for that net
new borrowing will be somewhat lower than targeted in the budget,” the
minister told reporters.
The Bundesbank said last month that the federal deficit this year
could stay markedly below E70 billion.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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