Germany eyes sale of Deutsche Telekom and Post to stimulate economy

The German government is considering reducing its stakes in Deutsche Telekom and Deutsche Post , hoping to cash in on high share values at a time when it is under pressure to spend more to stimulate its faltering economy. A finance ministry document seen by Reuters, which is due to be approved by Chancellor Angela Merkel’s cabinet on Wednesday, sketches out plans for holdings in a range of companies. A sale of shares in rail operator Deutsche Bahn also remains an option, it says.

A further sale of the Deutsche Telekom stake should be carefully examined.

German Finance Minister Wolfgang Schaeuble

Merkel’s “grand coalition” government aims to balance the federal budget next year for the first time since 1969 and a share sale could help it do that at a time of slowing growth. It could also free up billions of euros for public investments as Merkel is under pressure from European partners and domestic industry to spend more to stimulate the economy and shore up Germany’s crumbling infrastructure.

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