germany

on october 16th, the wall street journal reported on the german economy which is going to shrink less in the next year than expected, according to government projections. based on this rather promising outlook, german officials further announced prospective tax cuts for low and medium incomes in the near future. the officials also state that the proposed tax relief is based on the positive economic tendencies of the country. they estimate the overall cuts to amount to about € 15-35 billion, depending on how the tax system will be reformed and if at all. the released information is part of the economic ministries’ annual forecast. although the government bodies’ data suggests that the (german) economy has recovered faster than expected, it shows however, that the country will have to reckon with losses of tax revenue and related debt…

…is there a light at the end of the tunnel?

according to dw-world.de, “rising unemployment as a result of the continuing global economic crisis is having a particular effect on young germans under the age of 24, a new study says…”

“berlin, july 14 (reuters) – germany is unlikely to see sizeable economic growth in the rest of 2009, though a recovery could begin in 2010, according to wolfgang franz, president of the zew economic research institute. ‘what we’re likely to see in the next few months is a kind of undulating economy with gross domestic product growth of round about nil – at times slightly above, at times slightly below,’ franz told germany’s ard television on tuesday…’.”

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