German finance minister promises structural reforms in savings push, HB reports

(Reuters) -Germany's Finance Minister Lars Klingbeil promised far-reaching reforms and budget cuts as his government seeks to plug a looming budget gap, according to an interview with Handelsblatt newspaper published on Friday.

The government will "put together a fair overall package of savings and reforms," ​​Klingbeil said, adding that this would include significant changes to unemployment benefits as part of a reform of welfare payments. No details were spelled out.

Klingbeil spoke after parliament passed the country's first annual budget since sweeping reforms to loosen fiscal rules were passed earlier this year. The coalition currently faces a hole of 30 billion euros ($35.35 billion) in its financial plan for 2027.

"We will also discuss reducing subsidies in the coalition," Klingbeil said, adding that he also saw scope to reform inheritance tax.

($1 = 0.8487 euros)

(Writing by Matthias Williams; Editing by Lisa Shumaker)