BERLIN (AFP) - The German deputy finance minister, Caio Koch-Weser, sharply criticized the US administration in an interview made available for showering tax breaks on the wealthy and letting deficits get out of control while failing to improve the economy.
He said it had "handsomely reduced taxes for those who earn the most money. Economically speaking, that was not good, since it hardly succeeded in reviving the economy and has accumulated huge budget deficits."
In the interview, to appear in Der Spiegel magazine on Monday, Koch-Weser said it would have been wiser if President George W. Bush had spread tax cuts more equitably.
The burgeoning budget and balance of payments deficits were a cause of concern to money markets that the recent presidential election had done nothing to allay, Koch Weser said.
He added that the United States badly needs to restore budget discipline as deficits soar to record levels.
The current account deficit, reflecting international trade, reached more than 166 billion dollars (128 billion euros) in the second quarter of this year, and some experts predict the total for the year could be as high as 600 billion dollars.
The budget deficit for fiscal 2004 also came in at record 413 billion dollars.
Europeans -- and many financial analysts worldwide -- suspect that the US government has deliberately allowed the dollar to slide in order to finance its deficits and sustain exports.
11/13/2004 - 19:12 GMT - AFP