OTHER NEWS - Dec. 28, 1992

Bundesbank Head Calls for Spending Cuts: The head of Germany’s powerful central bank, Helmut Schlesinger, says moderate wage agreements and further savings in public expenditure are vital if German interest rates are to be reduced. The Bundesbank, citing inflation and money supply growth both way above target, has strongly resisted calls to cut its rates, which have been blamed for worsening the slowdown in the German economy and creating turbulence in the currency markets. Writing in the Welt am Sonntag newspaper, Schlesinger said: “A cautious wage policy--in West Germany and especially in East Germany--as well as determined savings in public sector budgets, are imperative if room is to be won for interest rate cuts, which could support the economy and also bring relief externally.”