Eichel: Budget Under Control by 2005

The German government says it will bring the country’s deficit back in line with the EU’s Growth and Stability Pact by 2005 -- on the condition that the government’s package of reforms is completely adopted. EU budget rules stipulate that deficits are not to exceed three percent of a country’s GDP. For the past two years, Germany has breached the deficit limit, and is set to do so again in 2004 with a projected deficit of 3.5 percent. German Finance Minister Hans Eichel said on Wednesday that with the full implementation of planned economic reforms, plus the projected figures for economic growth, Germany could cut its deficit by 0.6 percent in 2004, and 0.5 percent in 2005.