Wrong time for tight fiscal from a macro perspective, and contributed to the subsequent slowdown, but as a credit sensitive entity they are compelled to go in that direction.
It’s one of those darned if you do and darned if you don’t.
by Dave Graham
(Reuters) Germany likely posted a budget surplus of some 7.3 billion euros ($10.85 billion) in the first half of 2008 according to the Kiel-based IfW economic research institute, business daily Handelsblatt reported on Sunday.
The IfW thinktank had calculated the combined surplus of federal, state and local governments in the first half equated to 0.6 percent of German gross domestic product, the paper said.
Germany’s Federal Statistics Office is due to publish a budget balance estimate for the January-to-June period on Tuesday. ($1=.6727 Euro)