Germany calls budget gap report 'speculation'

The Finance Ministry said a report on Saturday that a new 10 billion euro gap has emerged in the 2005 budget, which would mean that Germany would break EU budget deficit rules for a fourth straight year, was "speculation".
The newsweekly Der Spiegel reported on Saturday that finance ministry state secretary Manfred Overhaus has warned there is a risk that 10 billion euro holes could appear both in 2004 and 2005 because of higher than expected costs for the labour office and the diminished profits from the Bundesbank.
"It's pure speculation," said a Finance Ministry spokesman. He said there would not be a sound estimate of the current budget situation until May - after the government's growth and tax revenue forecasts are made.