BERLIN, June 2 (Reuters) – Germany’s Federal Employment Agency (BA) faces a deficit of more than \u20ac8 billion \u200ceuros ($9.3 billion) this year, more than twice \u200cthe shortfall previously planned, according to a BA report for \u200bthe federal parliament’s budget committee seen by Reuters on Tuesday.<\/p>\n
The agency had assumed a deficit of just under 4 billion euros in its 2026 budget \u200cplanning but a \u2060weaker labour market and downgraded economic outlook mean the gap is now expected \u2060to widen sharply, the report said.<\/p>\n
If the contribution rate for unemployment insurance remains unchanged, the labour \u200bagency would \u200bhave to cover the \u200bshortfall through a government’s \u200cloan.<\/p>\n
The budget committee is due to discuss the agency’s financial outlook next week.<\/p>\n
OUTLOOK UNTIL 2030 CLOUDS OVER<\/p>\n
The labour agency also expects deficits in the coming years, with accumulated debt potentially rising to \u200caround 23 billion euros by \u200b2030.<\/p>\n
The agency projects a deficit \u200bof 2.7 billion \u200beuros in 2030, based on the \u200cgovernment’s spring forecast, which assumes \u200ba significantly \u200bweaker economy and labour market than previously expected.<\/p>\n
While the government’s autumn projection had forecast unemployment \u200bfalling to \u200c2.742 million by 2030, the current estimate is \u200b2.828 million.<\/p>\n
($1 = 0.8591 euros)<\/p>\n
(Reporting by Holger Hansen, \u200bwriting by Maria Martinez)<\/p>\n","protected":false},"excerpt":{"rendered":"BERLIN, June 2 (Reuters) – Germany’s Federal Employment Agency (BA) faces a deficit of more than \u20ac8 billion…\n","protected":false},"author":2,"featured_media":28926,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[28530,28529,5,2470],"class_list":["post-28925","post","type-post","status-publish","format-standard","has-post-thumbnail","category-germany","tag-deficit","tag-federal-employment-agency","tag-germany","tag-labour-market"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/28925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=28925"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/28925\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/28926"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=28925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=28925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=28925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}