Schroeder may consider stimulus package

The German Chancellor, Mr Gerhard Schroeder gave a fresh hint that the government might take measures to boost the weakening …

The German Chancellor, Mr Gerhard Schroeder gave a fresh hint that the government might take measures to boost the weakening economy, a German newspaper reported today.

Mr Schroeder said in a newspaper interview that his government would check at the end of this year whether to take steps.

Asked to comment on recent calls for an economic stimulus package, Mr Schroeder told Hanover newspaper Neue Presse: "Those who call for new economic programmes must say how these are to be paid. We can't and don't want to run up new debt." Mr Schroeder added: "At the same time one has to keep an eye on the current development and then check after the fourth quarter whether there may be a need to take action." The report was published on the newspaper's website.

The comment was the second time in two weeks that Mr Schroeder left the door open to an economy-boosting package.

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He had said last week that economic developments in the United States, Japan and Europe must be closely watched after last month's attacks on New York and Washington.

We must see what the developments are in the last quarter and whether it's necessary to do something, Mr Schroeder told reporters.

Even without an economic programme, Germany's budget is under pressure because the economic slowdown has hit tax revenues and forced up public spending.