Germany's budget deficit will probably exceed the EU's limit of 3 percent of gross domestic product this year, despite the finance minister's statements to the contrary, a German magazine reported on Saturday.
The weekly Der Spiegel cited a letter from Deputy Finance Minister Thomas Mirow to European Union Commissioner for Economic and Monetary Affairs Joaquin Almunia as saying that the deficit would be 3.1 percent of GDP this year.
"The budget deficit is expected to be 3.1 percent of GDP, slightly above the Maastricht ceiling," Mirow was quoted as saying in the letter in a preview of an article appearing in the latest edition of Der Spiegel. The report said that the German budget would not satisfy Maastricht criteria until next year.
Earlier this week, Finance Minister Peer Steinbrueck said Germany was on track to meet the EU budget deficit limit this year. He also said he expected the bloc to drop action against Berlin over its public finances in 2007.
"I can confirm the probability is high that we can end up with a result of 3 percent," Steinbrueck told reporters, referring to 2006. Berlin has breached the EU deficit limit of 3 percent of GDP every year since 2002.