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Germany EconMin: Econ Slightly Better,But Crisis Not Yet Over

BERLIN (MNI) - The German economy has recovered somewhat but the crisis is not yet over, Economics Minister Rainer Bruederle said Thursday at a business conference in Berlin.

Bruederle reaffirmed that the government will further stimulate domestic demand by tax cuts and subsidy increases of some 21 billion in 2010 and another E20 billion of income tax cuts in 2011.

"I see a slight improvement of the economy but we have to accelerate," the Minister said. "The crisis has not yet been overcome, there are risks which persist," he added, pointing especially to an expected rise of unemployment starting in winter.

Moreover, "the topic of a credit crunch is a serious problem which we are facing," Bruederle warned. Chancellor Angela Merkel will address that problem at a planned business summit in Berlin on December 2, he said.