Stock market Sources Chancellor Helmut Kohl calls for rigorous savings policy Chancellor Helmut Kohl has again called for a rigorous savings policy. Finance Minister Theo Waigel confirmed that the government's new budget plans reconsider already approved increases of benefits, e.g., child benefit and the second stage of the nursing insurance. Waigel stressed that both items are negotiable, even the inflation rate adjustment of pensions. The Council of German Cities fears that the federal savings will burden the municipalities even more.
Most municipalities are already deep in debts.
Council president Seiler said after an executive meeting in Erlangen, Bavaria, changes in taxation and additional welfare functions might drown the cities completely. According to coalition plans the current suggestions will be discussed with union and industry representatives at a meeting in the Chancellor's Office next week. Public administration budgets strained more strongly than expected Public administrations must save even more than previously expected. Head of the Bundestag CSU faction Michael Glos said DM60bn need to be cut instead of DM50bn. State and municipal budgets show the largest gaps, lacking DM30-35bn, said Glos.