EC defends revision of German deficit forecast

The European Commission had no particular reason to revise its spring forecast for a German budget deficit of 2

The European Commission had no particular reason to revise its spring forecast for a German budget deficit of 2.8 per cent of GDP this year until recently, commission spokesman Mr Gerassimos Thomas said.

He had been asked to comment on German opposition charges that this year's budget deficit is expected to be above the 3 per cent ceiling in the EMU stability pact and on a Der Spiegelmagazine report that the 2002 deficit might reach 3.5 per cent.

He said the commission expects Germany to provide latest budget data by early this month, "in line with (EU) treaty obligations". But he said the commission does not disclose such data.

It is to use the data for its autumn economic forecasts due in the autumn.

READ MORE

PA