Title: Germany's Budget Deficit May Reach 1.75% in 2024

The German Stability Council, which coordinates financial affairs between the federal government and the states, has projected that the general government budget deficit will reach 1.75% of GDP this year and decrease to around 1% next year. The council added on Monday that the structural deficit, adjusted to exclude seasonal and non-recurring factors, is expected to be around 1.25% of GDP in 2024, decreasing to nearly 0.75% in 2025, before rising slightly again in the following two years. The council anticipates the deficit to reach about 1% of GDP by the end of the forecast period in 2028. The council views the anticipated deficit rates as reasonable but believes that there is an urgent need to tighten fiscal policies to achieve them. German Finance Minister Christian Lindner stated at a press conference on Monday, following the council's meeting: "A moderate tightening of monetary policy not only helps curb inflation but also provides a sustainable space for investment."