Germany's ongoing economic boom can't be an excuse to neglect needed reforms, said Finance Minister Peer Steinbrueck before the German construction industry association Thursday.
"It would be fatal if we didn't use the good times to push ahead with a structural consolidation of the state's finances," he said, according to the text of a prepared speech. "After all, is there a less painful time to cut costs than during a boom?"
While Germany's upswing is "robust" and there's no end to the good economic climate in sight, spending should be kept in check.
Steinbrueck is currently drawing up the government's 2008 draft budget, due July 4, amid calls for increased spending due to a rise in tax revenue of 14.2% during the first five months of the year.
"In light of these great figures we must not let us wander into a haze and give away the money for which we have worked so hard," he said.
Steinbrueck pointed to EUR1.5 trillion of debt as one of the country's main problems, which means one of every six tax euros goes to pay debt interest. Additionally, he pointed out that a shortage of skilled laborers could soon put the brakes on the economy.
Germany's government projects 2.3% of gross domestic product growth this year.
The minister said there are many positive factors in the current economic outlook, including the country's lowest unemployment rate since 1995 and the fact that the government will be able to reduce its new debt for 2007 to below EUR19 billion this year, the lowest rate since reunification.
What's more, he pointed to countrywide budget deficit of 1.6% of GDP last year, the first time in four years Germany has met this criteria of the Maastricht Treaty, which requires countries to keep their budget deficit below 3% of GDP.