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German Deficit May Shrink to 3% Next Year, Handelsblatt Reports

Germany’s budget deficit may fall to 3 percent in 2011, a year earlier than previously projected by the government, because of a stronger economy and planned savings, Handelsblatt reported, citing a document prepared by the country’s finance ministry.

Finance Minister Wolfgang Schaeuble expects a shortfall of 3.7 percent for this year, down from a July prediction of 4.5 percent, according to the report. Public budgets overall will post a deficit of 94.5 billion euros in 2010, 23 billion euros less than in the earlier forecast, the newspaper said.

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