Germany Will Borrow Less in 2013 Thanks To Low Unemployment

he German government said Friday it will borrow less money than planned this year as low unemployment fuels a steady increase in tax income, while a closely-watched survey showed German consumers believe the economic recovery is gaining momentum.

Current plans call for new borrowing this year of 25.1 billion euros ($34.3 billion). In its monthly report, the Finance Ministry said it now “appears assured” that the government won’t need to borrow all of that.

It pointed to tax income in the year’s first 11 months and expectations of strong December revenue.

In November, the government tax take was up 3.9 percent compared with a year earlier at 39.48 billion euros. Over the January-November period, it totaled nearly 495 billion euros, a 3.3 percent increase.

Chancellor Angela Merkel’s new government is pledging both to avoid tax increases and to end new borrowing in 2015.

The German economy, Europe’s biggest, is expected to see growth accelerate next year after only a modest increase in output in 2013. The recovery from recession across the 17-country eurozone is also forecast to continue.

via Mainichi

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