Balanced budget for 2007 was more by accident. Drastic cutdowns on welfare + VAT raised by 3% + the first year where the tax income was higher than the predictions => balanced budget.

Generally German budget situation is improving, but the country is not at all healthy. Germany maybe an example for our American friends to look at how problematic overbounding deficit can be .. just for a smaller economy than the US it is felt more immediately, but also the smaller the better for recovery. In that context the current change of direction is remarkable - because in European context Germany is a juggernaut like the US compared to the world.