Germany to balance budget from 2014

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Germany aims to achieve a structurally balanced budget from 2014 and reduce its public debt to 73% of gross domestic product in 2016 from 82% this year, a government paper obtained by Reuters showed on Wednesday.

"The cabinet agreed today the actualization of the German stability program … which will now be presented to the European Commission and the Ecofin council," according to the paper.

The euro stability pact obliges all member states to inform Brussels of their plans for fiscal stability.

"Already from this year Germany will meet its medium-term budget goal of a structural deficit of maximum 0.5% of GDP in line with the preventative component of the stability and growth pact," the paper reads.

"The structural budget balance will improve further in the coming years so that from 2013, not only the factual but also the structural budget will be balanced."

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