Burton Mills: Projected budget surplus would be a win for Angela Merkel’s administration and the parties it hopes to form a coalition with.

According to recent reports, Germany could announce a budget surplus of 14 billion euros this year. A budget surplus of this size would give Chancellor Angela Merkel’s conservative party significantly more room to negotiate as it attempts to form a new coalition with the Greens and Free Democrats.

Taipei, Taiwan- based investment house Burton Mills’ economists stated that the new budget projections were driven by increasing tax revenues and robust economic growth.

While several institutions began forecasting a record government budget surplus as early as September of this year, the Finance Ministry had previously anticipated a flat budget.

Burton Mills economists believe that overall government budget surpluses, including state governments, could last for several years to come.

The surplus projection is positive news for Merkel’s party as well as for the pro environmental Greens and Free Democrats whose proposed strategies would total somewhere in the region of 100 billion euros in additional spending over the next four years combined.

After little progress was made during discussions that lasted 11 hours last week, the three parties committed to further talks next week in order to tackle climate and immigration policy.

Leaders from all 3 parties exchanged less than pleasant remarks in a series of interviews with the media recently but according to a senior member of the CSU, the parties still hope to reach a satisfactory agreement before the end of 2017.

The projected surplus would enable the government to cover €7 billion in anticipated expenses linked to a nuclear waste deal and another 6.7 billion euros in expenses for the influx of migrants without depleting a €20-billion reserve account that was established during 2015’s migrant crisis.

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