The German government has removed its mountain of debt. The Federal government, Länder, municipalities and social insurance, including all extra budgets were at the end of September with 1929,8 billion euros in the chalk. The 2.3 per cent or € 45.0 billion less than a year earlier, as the Federal Statistical office announced on Thursday. The state benefits from the strong economy with increasing employment, reducing tax and contribution increase. In addition, low interest rates reduce the burden on the cost side.

The Bundesbank, expects the public debt to the end of fall this year for the first time since 2002 under the brand of 60 percent of gross domestic product, which is set out in the EU stability Pact as an upper limit.

“All the levels of the total Public budget have reduced debt”, said the statistician. The Federal government reduced it by 1.4 percent to 1226,3 billion euros, the countries, by 3.4 percent to 572 billion euros. “Hamburg and Schleswig-Holstein, all the länder have reduced their debt,” it said. “In both countries, borrowing in connection with the complex, to the HSH Nordbank were a major reason for this development.” The highest decrease of Saxony reported with 13.9 per cent, followed by Baden-Württemberg (-12,5) and Bavaria (-11.4 commodity).

The debt of the municipalities fell by 5.5 percent to 131.1 billion euros. Particularly strong declines were in the state of Mecklenburg-Vorpommern (-9.4 percent) and Saxony (-8,9). The social security was in debt at the end of the third quarter, with 403 million euros, which represents a decline of 7.3 percent. In the statistics, only liabilities to the non-public area will be conducted, including, for example, credit institutions and private companies.

mik/Reuters