German budget protests

TRADE unions and opposition politicians yesterday attacked the German finance ministry's failure to rule out the possibility of an imminent spending freeze, saying such a move would hit jobs harder in a time of high unemployment.

A freeze would be seen to be helping the federal government in its efforts to reduce public deficits ahead of European Economic and Monetary Union (EMU).

Speculation about a freeze has increased recently following the higher than expected increase in January unemployment, which in turn is seen leading to a higher burden on state finances.