BERLIN -- Germany is expected to have a 15 billion euro (17.6 billion dollar) shortfall in its 2004 federal budget, Finance Minister Hans Eichel confirmed for the first time publicly Sunday. "We will have to reckon next year with a figure of more or less 15 billion euros (17.7 billion dollars) to have a budget in conformity with the Constitution," he said in an interview with the Deutschlandfunk radio station: "This is the result of three years of downturn in growth." The state would have to use all the instruments at its disposal to make savings, he said, adding: "There must be no taboos."

Earlier this month official data showed that Germany has entered a recession for the second time in two years, deepening the gloom over Europe's biggest economy and the beleaguered government of Chancellor Gerhard Schroeder.

Eichel also said then that tax revenue this year would be 8.7 billion euros lower than previously forecast, AFP reported.

"I am in the same situation as the French finance minister," Eichel told Deutschlandfunk. But he stressed that the French had not had to cope with the added difficulties involved in German reunification.

German reunification in 1990 put considerable strains on the economy.

Despite German discipline in monetary matters, the country had burst through the ceiling into budgetary deficit, Eichel said.

The European Commission said last Wednesday it was satisfied with action taken by Germany to cut its ballooning public deficit, which has breached strict euro-zone guidelines.

Germany is therefore set to escape any financial penalties for violating the terms of the stability and growth pact, said the EU Economic and Monetary Affairs Commissioner, Pedro Solbes.

Germany breached the pact's public deficit limit of three percent of output last year, and is forecast to exceed it again this year.

Some 90,000 people staged demonstrations in towns across Germany on Saturday in protest at the government's deeply controversial social and economic reform package to repair public finances.

European Union Economic and Monetary Affairs Commissioner Pedro Solbes, meanwhile, urged Germany to press ahead with the reform package, in remarks to be published in the German press on Sunday.

He called the agenda 2010 package a "positive and long-awaited step in the right direction," in an interview with the ***Bild am Sonntag*** Sunday paper.

"it is now important that the strategy be implemented without restrictions," he said. eaa0109 3 fi 0435 deu /afp-wc81 germany-economy-deficit-budget 15 billion euro hole in germany 20004 budget: finance minister berlin, may 25 (afp) - germany is expected to have a 15 billion euro (17.6 billion dollar) shortfall in its 2004 federal budget, finance minister hans eichel confirmed for the first time publicly sunday. "we will have to reckon next year with a figure of more or less 15 billion euros (17.7 billion dollars) to have a budget in conformity with the constitution," he said in an interview with the deutschlandfunk radio station: "this is the result of three years of downturn in growth." the state would have to use all the instruments at its disposal to make savings, he said, adding: "there must be no taboos." earlier this month official data showed that germany has entered a recession for the second time in two years, deepening the gloom over europe's biggest economy and the beleagured government of chancellor gerhard schroeder. eichel also said then that tax revenue this year would be 8.7 billion euros lower than previously forecast. "i am in the same situation as the french finance minister," eichel told deutschlandfunk. but he stressed that the french had not had to cope with the added difficulties involved in german reunification. german reunification in 1990 put considerable strains on the economy. despite german discipline in monetary matters, the country had burst through the ceiling into budgetary deficit, eichel said. the european commission said last wednesday it was satisfied with action taken by germany to cut its ballooning public deficit, which has breached strict euro-zone guidelines. germany is therefore set to escape any financial penalties for violating the terms of the stability and growth pact, said the eu economic and monetary affairs commissioner, pedro solbes. germany breached the pact's public deficit limit of three percent of output last year, and is forecast to exceed it again this year. some 90,000 people staged demonstrations in towns across germany on saturday in protest at the government's deeply controversial social and economic reform package to repair public finances. european union economic and monetary affairs commissioner pedro solbes meanwhile urged germany to press ahead with the reform package, in remarks to be published in the german press on sunday. he called the agenda 2010 package a "positive and long-awaited step in the right direction," in an interview with the bild am sonntag sunday paper. "it is now important that the strategy be implemented without restrictions," he said.