BERLIN, April 18 (Reuters) - Germany’s public debt is falling faster than expected due to record employment and buyoant tax revenues, pushing the debt ratio below the European Union’s target threshold for the first time in over a decade, the finance ministry said.
Chancellor Angela Merkel’s cabinet on Wednesday agreed the government’s new stability programme which Berlin will send to the European Commission, the executive branch of the EU.
In its report, the finance ministry now projects the debt ratio to fall to just over 58 percent of gross domestic product (GDP) in 2019 from 61 percent this year.
That would see the debt ratio drop below the EU Stability and Growth Pact threshold of 60 percent of GDP a year earlier than previously forecast. The last time Germany’s debt ratio was below the threshold was in 2002. (Reporting by Michael Nienaber Editing by Paul Carrel)