Germany approves 2007 budget

Germany approves 2007 budget

Finance Minister Peer Steinbrueck's second budget calls for spending of US$342.3 billion, an increase from the US$334.6 billion in 2006.

The new budget foresees borrowing of US$28.1 billion, nearly half the US$48.9 billion penciled into the government's budget draft for this year.

Key to the plan is bringing the deficit under the 3-percent threshold as required by EU mandate for all countries that use the euro. Germany's deficit has not been below the cap since 2001, the AP reports.

The plan also targets investment at US$30.1 billion for next year, which means that Germany's budget for the first time in five years will comply with constitutional rules that require investment levels to be above new debt.