Berlin wants to save 10 billion euros per year.

The German Finance Minister Wolfgang Schäuble.
Keywords: austerity plan, deficit, GERMANY, Schäuble.

To comply with new requirements of the Constitution provides an important German austerity plan. With tax increases and budget cuts, which should save the Education, Research and Social Protection.

Germany is determined to quickly reduce its budget deficit. While Angela Merkel calls for fiscal discipline among its European neighbors, the government was quick to reiterate the objective enshrined in the Constitution of the country since last year: The Federal Government must limit its structural deficit to 0, 35% of its gross domestic product (GDP) in 2016.
To achieve this, the spending cuts represent at least 10 billion euros per year over the next six years, reveals Financial Times. The center-right coalition to lead the country is divided on sectors that should be affected by the austerity measures. Asked by German daily Frankfurter Allgemeine Zeitung published this SundayThe German finance minister said the national education, research and welfare will not be affected by budget cuts: "It would reduce our chances to strengthen our growth potential," said Wolfgang Schäuble, thus rejecting the proposal of the President of Hesse, Roland Koch, who had ruled in this direction.
Contrary to the promises of the coalition, tax increases will be necessary in order to reduce the country's budget deficit. Again, opinions differ as to who will be affected by these increases.
In the end, Germany intends to reduce its deficit to 3% of GDP by 2013, according to European stability pact, and 0.35% in 2016 as the German Constitution requires now. The largest economy in the euro area has so much the lead in under budget. Nicolas Sarkozy recently raised the possibility of including in the Constitution of the budget deficit targets, Following the example of Berlin. And this morning, the British Finance Minister George Obsorne said he would submit a program to reduce public expenditure saving of 6.2 billion pounds this year.