About the long economic upswing in Germany can look forward to the public coffers and German workers alike. The mountain of debt of the German state was at the end of September to € 45 billion lower than last year. The real wages of the German grew in the third quarter to 1.5 per cent, as strong as the past two years.
the Federal government, Länder, municipalities and social security funds, including all extra budgets at the end of September had a debt in the amount of 1929,8 billion euros. The 2.3 percent, or 45 billion euros, less than a year earlier, as the Federal Statistical office announced on Thursday. The state benefits from the strong economy with increasing employment, reducing tax and contribution increase. In addition, low interest rates relieve the load on the cost side.
The Bundesbank, expects the public debt to the end of fall this year for the first time since 2002, under the mark of 60 per cent of the gross domestic product. This is laid down in the EU treaties as an upper limit, but violated many of the States. The after Germany’s second-largest economy, France is approximately 100 percent, the number three in Italy even to 130 percent.
Almost all of the building debt
“All the levels of the total Public budget debt reduced,” said the statistician. The Federal government reduced it by 1.4 percent to 1226,3 billion euros, the countries, by 3.4 percent to 572 billion euros. “Hamburg and Schleswig-Holstein, all the länder have reduced their debt,” it said. “In both countries, the recordings in connection with the complex, to the HSH Nordbank were to Blame, a major reason for this development.” The highest decrease of Saxony reported with 13.9 per cent, followed by Baden-Württemberg (-12,5) and Bavaria (-11.4 commodity).
The debt of the municipalities fell by 5.5 percent to 131.1 billion euros. Particularly strong declines were in the state of Mecklenburg-Vorpommern (-9.4 percent) and Saxony (-8,9). The social security was in debt at the end of the third quarter, with 403 million euros, which represents a decline of 7.3 percent. In the statistics, only liabilities to the non-public area will be conducted, including, for example, credit institutions and private companies.
East German benefit
there was also Good news for German workers. Their purchasing power is increased in the third quarter as strong as the past two years. Real wages grew by 1.5 percent compared to the same period last year, according to the Federal Statistical office also on Thursday. Although the inflation rate in this period reached 2.1 percent, the highest level in six years, but rose at the same time, the wages of 3.6 per cent as strong as for over seven years. “This is a real earnings growth of 1.5 per cent,” said the statistician.