German budget allows for more spending on migrants, security

Record ID: 112691

  • Title: German budget allows for more spending on migrants, security
  • Date: 23rd March 2016
  • Summary: BERLIN, GERMANY (MARCH 23, 2016) (REUTERS) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE ARRIVING FOR NEWS CONFERENCE SCHAEUBLE SEATED, LOOKING AT DOCUMENTS PHOTOGRAPHER (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "We are helping refugees in Germany and we will do everything we can so that those who stay in Germany will be integrated as quickly a
  • Embargoed: 7th April 2016 17:04
  • Keywords: Germany Schaueble debt
  • Location: BERLIN, GERMANY
  • City: BERLIN, GERMANY
  • Country: Germany
  • Topics: Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA0014A5IUML
  • Aspect Ratio: 16:9
  • Story Text: The German cabinet approved financing plans on Wednesday (March 23) that Finance Minister Wolfgang Schaeuble said catered for higher spending on migrants, security and infrastructure without having to borrow more money.
    An influx of 1.1 million migrants last had year raised questions about whether Germany could cover the cost of accommodating and integrating the newcomers without jeopardising its cherished balanced budget.
    But Schaeuble, a veteran conservative member of Chancellor Angela Merkel's cabinet, insisted that goal would be met.
    "We are helping refugees in Germany and we will do everything we can so that those who stay in Germany will be integrated as quickly and as well as possible," Schaeuble said.
    He added that investments in "infrastructure, education and research" would continue.
    "By doing so, we ensure sustainable growth in Germany. We will achieve a budgetary equilibrium."
    Germany is setting aside 10 billion euros to deal with the migrant crisis next year. It expects 800,000 new arrivals this year, and 600,000 next year, according to Schaeuble.
    Overall, the financing plans drawn up by Schaeuble's ministry envisage a 30.9-billion-euro increase in spending to 347.8 billion by 2020, which will be achieved without new net borrowing due largely to rising tax revenues.
    With unemployment running at a post-reunification low of 6.2 percent and the economy growing steadily, Schaeuble is banking on increased revenues to allow the government's increased spending without incurring a deficit.
    "Sometimes it needs to be recalled that we have the best possible labour market situation, which of course in some ways extends the leeway for budgetary policies," said Schaeuble.
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