February 27, 2013
In 2012 Germany’s general government sector (Maastricht definition) in 2012 posted a budget surplus (of 0.2% of GDP) for the first time since 2007. This was only the third surplus since German unification. The improvement in the financial situation of the municipalities and social security scheme has compensated the deficit of the federal government and the Länder. The federal government and the Länder were able to roughly halve their deficits versus 2011. According to preliminary calculations, the federal government was already able to comply with the maximum permissible deficit of 0.35% of GDP stipulated by the debt ceiling last year. From today’s point of view, similarly positive results are on the cards in 2013.