mishtalk.com / Mike “Mish” Shedlock / February 23, 2017 1:58:16
Thanks to negative interest rates at the ECB, record low unemployment, and a desire to maintain a balanced budget, Germany’s Budget Surplus Hit a Record High since reunification in 1991.
Chancellor Angela Merkel is singing a happy tune, but the austerity message will not play well with most of the Eurozone.
Germany’s statistical office on Thursday reported the country was in the black by €23.7bn last year, with local, state and central government coffers benefiting from record-low unemployment and ultra-cheap debt finance stemming from the European Central Bank’s mass purchases of sovereign bonds.
Chancellor Angela Merkel’s government, which has vowed to maintain a balanced budget as a cornerstone of its economic policy, hailed the larger surplus. “These figures show that Germany is doing well,” said Jens Spahn, deputy finance minister. “We invest more than ever — and still have surpluses.”
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