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German government to post 10-billion-euro surplus - report

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By Reuters
German government to post 10-billion-euro surplus - report
FILE PHOTO: German Chancellor Angela Merkel speaks during a session at the lower house of parliament Bundestag in Berlin, Germany November 21, 2018. REUTERS/Fabrizio Bensch   -   Copyright  FABRIZIO BENSCH(Reuters)

BERLIN (Reuters) – The German government will post a budget surplus of more than 10 billion euros (9.00 billion pounds) this year, the Handelsblatt business daily reported on Monday, citing government sources.

Germany has enjoyed a surplus since 2014 as the European Union’s largest and most powerful economy has been growing for nine years in a row.

The government estimated earlier this month that Germany’s overall public surplus, including the federal budget, the states and municipalities, should register a record surplus of more than 61 billion euros this year. That would be 25 billion euros more than in 2017.

Growth is expected to weaken next year as the economy faces headwinds from trade frictions that have been weighing on exports.

The surplus could set off a fight among ministries vying for a slice of the bountiful revenues.

The defence and transport ministries have both said they need more resources to modernise the armed forces after years of under-funding, as well as to foster greener mobility.

(Reporting by Joseph Nasr; Editing by Mark Heinrich)