Germany plans extra 10 bn euros in public spending

(MENAFN- AFP) Germany plans an additional 10 billion euros ($12 billion) in public investment by 2018, its finance minister said Thursday, amid calls by some EU partners to do more to help the eurozone economy.

"I will propose to the cabinet that we allocate additional means for public investment of the order of 10 billion euros" by 2018, Wolfgang Schaeuble told reporters.

He said the move would represent a "fundamental contribution" to a plan announced by new European Commission president Jean-Claude Juncker for an extra 300 billion euros in investment for the coming years.

The veteran German minister insisted that the additional outlay would not impact his country's plans for a balanced federal budget in 2015, the first in 45 years.

"From 2015 we will also be able to raise spending to the levels that revenues increase," he said.

"Therefore we have room for manoeuvre for additional investment."

Asked where the additional expenditure would be focused, he spoke of research and education, as well as transport infrastructure, including rail, and strengthening the finances of local authorities to support investment in construction.

France has recently called on Germany to help the eurozone's stalling economy by loosening its purse strings and increasing investment to match the savings Paris is seeking to make in public spending.