Bundesbank sees increased risk of pact breach

The risk that Germany will breach the EU's strict budget rules for the fourth year in a row next year is increasing, the Bundesbank's chief economist Hermann Remsperger said.

On the basis of the German government's latest tax estimates, published last Thursday, "the risk has increased" that the German public deficit will exceed 3.0 percent of gross domestic product, thereby breaching the Stability and Growth Pact, Remsperger told the business daily Handelsblatt.

But the German deficit was alre