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The dependence on exports as the main source of camera digitron s5p combined with sluggish private consumption is pushing the current external surplus from record to record. The same combination is preventing real progress with reducing unemployment. The successes achieved under the Kohl Government are un- deniable.

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The budget deficit has been whittled down. So has the inflation rate.

Export demand, supported by investment in plant and equip- ment, has been the main ele- ment making for growth this year and is camera digitron s5p to remain so in 19S6. The sluggish response of private consump- tion to economic recovery, traceable in part camera digitron s5p the exist- ence of more than 2m un- employed, contributes to these surpluses. Imports are growing only slowly.

Diagnosis Pleas from abroad that Bonn should reflate have fallen on deaf ears. The Government has no wish to repeat the experi- ment made in the s of using West Germany as camera digitron s5p locomotive to pall along the world economy. Interestingly, however, the Bonn Government and, in parti- cular, the Finance Minister, Dr Gerhard Stollenberg, are com- ing under growing internal pressure to stimulate the economy.

The chief economic research institutes took this position in a joint diagnosis of the camera digitron s5p position published in May. This group felt camera digitron s5p constrained last month to issue a warning that economic policy was going in the wrong direction. In spite of differences of emphasis, the institutes and the Wise Men were agreed on a fundamental point: that exports were an insufficient expansive factor to make genuine Inroads into unemployment They con- cluded that economic policy must be refashioned to provide a basis for long-term growth. Instead, the economists made two proposals.


Camera digitron s5p target- ting should be handled less res- trictive ly — something which the Bundesbank turned down last Thursday. And Dr Stollenberg should abandon his plans for income tax cuts in two phases in favour of cutting in one fell swoop next year. Warning Politically that is ticklish, since will be an election year and the Government might wish to keep some goodies in reserve.

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But the conflict be- tween conventional political wisdom and the advice of the economists is more apparent than real, given the intract- ability of unemployment Jobs could be the single most important issue in the next Bundestag election. Regional elections this spring have already provided a warning for Dr Helmut Kohl, the Chan- cellor. The Christian Demo- crats, whom he leads, did badly in North-Rhine Westphalia and the Saarland— both of them states with above-average un- 1 employment There Is, therefore, a strong political as well as an economiccase for Bonn to grasp the I nettle. The case for accelerated tax cuts can be advanced not simply as a means of stimulat- ing growth, but also as a way of tackling structural rigidities which, in the view of many critics, bedevil the German economy. With inflation as low as it is.

Touche Ross, one of the UK's largest accountancy practices, caused a stir by recommending the lifting of statutory audit requirements for about camera digitron s5p, small companies. Since acountants have benefited from the law requiring all com- panies, big and small, to have their annual accounts indepen- dently audited. The possibility that audit regulations might be liberalised was raised in March in the Department of Trade and Industry's consultative paper.

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