Financial Times FT.com

European Comment: Berlin's Houdini in knots

Published: November 4 2004 22:08 | Last updated: November 4 2004 22:08

For Hans Eichel read Harry Houdini. The German finance minister is twisting himself into ridiculous contortions to get Germany's budget deficit within European Union limits next year for the first time since 2001.

Political and economic constraints prevent him from doing the obvious: cutting Germany's €157bn of state subsidies and tax breaks coupled with comprehensive tax reform to address the budget's structural weakness.

European comment

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