Balances Budget For First Time in 38 Years

[Kletterbuxe]

EXPORTS FUEL GROWTH

Germany Balances Budget For First Time in 38 Years

Germany finally managed to balance its budget in 2007, thanks to a second straight year of buoyant growth in Europe's largest economy. But the outlook for 2008 is less rosy.


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DPA
Exports helped drive Germany's economic growth in 2007.




Germany balanced its budget in 2007 for the first time since 1969, the Federal Statistics Office announced Tuesday. The development is thanks to an economic recovery in which the German gross domestic product grew 2.5 percent last year. The statistics office reported that the three tiers of German government -- federal, state and local -- had a tiny surplus of €70 million in 2007, a turnaround from a deficit of €36.96 billion in 2006.
The balanced budget marks a strong improvement in Germany's budget performance after it broke European Union rules on budget deficits four years running, from 2002 through 2005.
The statistics office said economic growth was driven by heavy corporate investment and by exports, with the latter growing by 8.3 percent. Domestic consumer spending remained weak, however, falling 0.3 percent.
Economic growth last year was slower than the 2.9 percent rate achieved in 2006, a boom year for Germany, and the government has recently lowered its forecast for 2008 growth to less than 2 percent. Record oil prices, the strength of the euro against the dollar, and concern over the global impact of the US subprime credit crisis (more...) (http://www.spiegel.de/international/business/0,1518,517139,00.html) are expected to take their toll this year.


The government expects a small budget deficit in 2008.
cro/AP/dpa/ddp

[Freibier]

Thank you, Gerhard Schröder! ;)

[Kletterbuxe]

Never liked him but he played his part.


FIXING THE LABOR MARKET

Schröder Reforms Bear Fruit in German Recovery

By Christian Reiermann
Once the sick man of Europe, Germany is currently enjoying an economic recovery, with fewer people out of work and solid growth. And unemployment is likely to remain low -- largely thanks to unpopular labor reforms pushed through by the last chancellor, Gerhard Schröder.



http://www.spiegel.de/international/business/0,1518,528757,00.html

[Mastermind]

It won't last...like it says...outlook for 2008 is not rosy. Just wait until the credit bottom falls out of the world bank...We'll be using our SUV's for chicken coops and burning the tires to stay warm.

[signatory]

Ugh I'll congratulate any surplus but man... too little too late :|


We'll be using our SUV's for chicken coops and burning the tires to stay warm.

Now that's awesome!

[muck]

It was neither Schröder's nor Merkel's merit that the Ministry of Finance was able to present lovely figures yesterday. The total dues burden for the average citizen sums up to nearly sixty percent of its income nowadays, so there is no wonder why the federation is not short of cash.

[REGGIE HAMMOND]

It was neither Schröder's nor Merkel's merit that the Ministry of Finance was able to present lovely figures yesterday. The total dues burden for the average citizen sums up to nearly sixty percent of its income nowadays, so there is no wonder why the federation is not short of cash.


No kidding that much? rofl

[Invisigoth]

Let's not forget the 19% VAT they shoved up our a**es.

[LillaMy]

You are always welcome to Sweden...
If you really ad things together I think that the total burden for a citizen is around 85%... the VAT is 25%, income tax is 55% + a ****load of other taxes...

:-(

[perdurabo]

Let's not forget the 19% VAT they shoved up our a**es.
oh c'mon we have 22% VAT but we have lower PIT and CIT and other taxations

[muck]

oh c'mon we have 22% VAT but we have lower PIT and CIT and other taxations
Exactly. We have solely for the income tax rates ranging from 15% to 45%, not to mention the social contributions and a ****load of taxes which make everyday life much more expensive - eco-taxes, eco contributions, tobacco taxes and so on and so on.

[jklv]

I feel jealous, my country (Mexico) has never been at total war since it's independence and still we are like economically stuck. While Germany well, has been at 2 world wars and in the 90's let's say it totally recovered. Beside all of that growth disadvantages Germany is now the second (IIRC) largest world economy. I'd really like to know the German secret for such recoveries.

[muck]

I feel jealous, my country (Mexico) has never been at total war since it's independence. While Germany well, has been at 2 world wars and in the 90's let's say it totally recovered. Beside all of that growth disadvantages Germany is now the second (IIRC) largest world economy. I'd really like to know the German secret for such recoveries.
The third largest economy, but the largest export economy :)
And the secret has already been unveiled here: Ripoff of citizens.
Our situation would be even better if we had not reunified with the German Democratic Republic, since 1990 nearly a trillion € has been pumped into this part of the country and it is still a giant heap of ruins with high unemployment.

[Invisigoth]

The third largest economy, but the largest export economy :)
And the secret has already been unveiled here: Ripoff of citizens.
Our situation would be even better if we had not reunified with the German Democratic Republic, since 1990 nearly a trillion € has been pumped into this part of the country and it is still a giant heap of ruins with high unemployment.


Let's not forget solidarity tax :) "Mr. Putin, build up this wall!" :D

[muck]

Let's not forget solidarity tax :) "Mr. Putin, build up this wall!" :D
I hope they are truly going to abolish Soli after the next elections as promised.

[Invisigoth]

I hope they are truly going to abolish Soli after the next elections as promised.

Yeah....right after we can calculate our taxes on a Bierdeckel ;)

[muck]

Yeah....right after we can calculate our taxes on a Bierdeckel ;)
When they really should abolish Soli they will of course increase aother tax in exchange.

[jklv]

The third largest economy, but the largest export economy :)
And the secret has already been unveiled here: Ripoff of citizens.
Our situation would be even better if we had not reunified with the German Democratic Republic, since 1990 nearly a trillion € has been pumped into this part of the country and it is still a giant heap of ruins with high unemployment.
I wouldn't care being ripped off as long as I can live with such quality as in Germany, crap I would love to have some green trees and grass in this deserted city ruled by drug lords.

[Herman the II]

When they really should abolish Soli they will of course increase aother tax in exchange.


We are still paying the "Schaumweinsteuer" that was introduced to finance the "Hochseeflotte" under the Emperor. "Hochseeflotte" is gone, the Emperor is gone but the Schaumwiensteuer is still around...
I wouldn't bet on a disappearing Soli, but maybe they will change the way the Soli is alloted between west and east.

[muck]

We are still paying the
but maybe they will change the way the Soli is alloted between west and east.
...Since the situation would actually require a sort of Soli for Western Germany now.

[jklv]

What is:
Bierdeckel?
Schaumweinsteuer?
Hochseeflotte?

Thanks
Google isn't being my friend :(

[Herman the II]

What is:
Bierdeckel?
Schaumweinsteuer?
Hochseeflotte?
Thanks

1. beer mat
2. tax on sparkling wine
3. main German battle fleet in WW1

you're welcome... :)

[muck]

A Bierdeckel is a beer coaster, a piece of card or something else you put under your glass of beer. A German politician has stated once he could renew the tax system in a way so easy that it would fit on a beer coaster.

Schaumwein is an aged word for champagne.

A Hochseeflotte is a mighty fleet of battle ships.

[Invisigoth]

What is:
Bierdeckel?
Schaumweinsteuer?
Hochseeflotte?
Thanks

Bierdeckel - A little cardboard square we place under our beer mugs in order to prevent stains on the table. A few years back Friedrich Maerz (CDU) said we could simplify our tax system to the point where we could do our tax declarations on a Bierdeckel. Never happened of course since it is our duty to ensure employment for all those blood sucking accountants.

Schaumweinsteuer - Is a tax on "foam wine", champagne if you will. Theoretically the only true Champagne comes from the French region of Champagne, so we just call it Sekt to avoid the trademark issues ;)

Hochseeflotte - Blue Water Navy

[muck]

roflNow that should be enough.

[Invisigoth]

roflNow that should be enough.

Hey, we're just exporting German culture, remember Exportweltmeister? ;)

[jklv]

lol well thanks a lot guys xD
See what I mean? you Germans are awesome!

[Kletterbuxe]

Wow, sombody likes us !

By the way, typical german to complain, even when the news are good !

[muck]

That is unfortunately true as well.

[Invisigoth]

Wow, sombody likes us !

By the way, typical german to complain, even when the news are good !

That's because we always want to make things better, its the inherent German drive to perfection! That's why my twenty year-old Made in Germany power drill still works better than any brand-new Chinese junk :P

[Herman the II]

That's because we always want to make things better, its the inherent German drive to perfection!

Funny, I was going to write the exact same reply....

[Kletterbuxe]

seems that I´m not as german as I thought.

perfection ? no way...

[Erki]

income tax is 55%

It is? I thought it was just +/- 30%.

[Gurdil]

Germany can balance the budget all it wants. The debt will be still growing. unattended consequences of paper money...