BERLIN, April 12 German public debt is expected
to fall by some 2 percentage points this year, the government
said in a report on Wednesday, keeping Europe's largest economy
on track to bring down debt to below 60 percent of economic
output by 2020.
Debt stood at 68.3 percent of output in 2016, the government
said in its report, which it will present to the European
European Union rules say countries should keep the ratio of
debt to gross domestic product (GDP) at no more than 60 percent
or at least be heading down towards that level. The rules have
been broken for years by Germany and other countries.
The German government said in its report that the low
interest rate environment created by the European Central Bank
had lightened Germany's debt burden.
A stability programme agreed by the government last year
also includes a goal of no net new debt until 2020 despite
higher state spending.
"This course has proven to be a guarantor of growth, secure
jobs and prosperity," Finance Minister Wolfgang Schaeuble said
in a statement.
(Reporting by Gernot Heller; Writing by Joseph Nasr; Editing by