MUNICH, Germany -- German Finance Minister Hans Eichel said some 10 billion euros should be cut from next year's budget in a bid to avoid tax hikes, in an interview published Monday.

Eichel told the ******Sueddeutsche Zeitung***** newspaper that spending must be reduced and several tax breaks eliminated so Germany can maintain its budget targets while fostering growth in Europe's largest economy.

He said he would announce the goal to Chancellor Gerhard Schroeder's Social Democrats (SPD) and the Greens at a meeting to discuss renewing their coalition after their victory in last Sunday's general election, AFP reported.

Eichel, also a member of the SPD, rejected a proposal by two Social Democrat state leaders to increase wealth and inheritance taxes to close a yawning gap in regional public deficits.

"I am not holding any debate on tax increases and am against altering tax rates," Eichel was quoted as saying.

The finance minister confirmed media reports that Germany would have to lower its economic growth forecast for the coming years.

"For the years 2003 through 2006, I want to work from a basis of 1.5 percent," Eichel said, noting this had been the average growth rate for the last 10 years.

Germany had originally forecast 2.5 percent growth for 2003.

But he said the center-left government was not satisfied with the projected growth rate and would work to boost it with sound economic policies.

Government sources told the newspaper that Eichel was considering an end to corporate tax benefits under which companies could write off past losses to slash their tax bill.