Northern Country

How globalization changes capitalism, the economy and politics

Governments cruise in debt

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Its no secret: Federal, state and local government budgets are in trouble. Probably all OECD countries have accumulated large amounts of external debts to combat the biggest financial and economic crisis since the Great Depression.

In Germany deficits of State Governments increased by a stunning 10.2 billion to a total of 13.4 billion euro in the first three months of 2009. In the first quarter expenditures totaled 77.8 billion and total income was 64.3 billion euro. The biggest contribution to the large deficit was from the rescue of the Bayrische Landesbank.

The deficit for the Federal Government improved slightly in the 1st quarter from a year ago to 17.4 billion euro. The costs for rescuing the German banking system is not included in the budget deficit but rather situated in external funds, like the Finance Stabilization Fund (Soffin).

German government total external debt in May 09:

StaatsschuldenMai09

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Written by Alfred

3. June 2009 at 4:30 pm

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