Germany will post a budget deficit next year of as much as €35 billion, helping breach the European Union's deficit limit for the third straight year, Handelsblattnewspaper reported today.
Finance Minister Mr Hans Eichel will increase 2004 borrowing from about €30 billion originally planned and will announce the move before parliament votes on next year's budget at the end of November, the paper said, citing unidentified government sources.
Mr Eichel has said it would be extremely difficult next year for Germany to remain within the EU's deficit limit of three percent of gross domestic product but that he would try to do so.
The government is expected to revise down its 2004 growth forecast next week to as little as 1.5 percent, from two per cent.