German Economy Minister Philipp Roesler wants to push the pace of government privatisation efforts including in companies such as Deutsche Telekom, according to an Internal Ministry document obtained by Die Welt newspaper.

“The state has to withdraw itself from companies and financial institutions,” the Economy Ministry report said.

The ministry will push for the creation of an expert commission to come up with concrete proposals on where the state can reduce its holdings, the report said. The sales can help Germany achieve a balanced budget well before the 2016 target.

Deutsche Telekom and railway operator Deutsche Bahn are the two most prominent names on the government’s list of privatisations. The Government holds 14.8 per cent of Telekom and 100 per cent of Deutsche Bahn. The Government also holds stakes in Deutsche Post, Commerzbank as well as the airports Berlin/Brandenburg, Cologne/Bonn and Munich.

In December, Economy Ministry state secretary Bernhard Heitzer said that the ministry was interested in quick sales of state holdings while rising share prices and low returns on German government bonds make such deals more attractive to investors.

“The clear answer is: yes,” Heitzer said, but added two criteria were important: “First is there an irrefutable necessity for the state’s involvement? And secondly what is the absorbing capacity of the capital markets for each specific case?”

The German Government has returned this year to long-term efforts to sell off state holdings after the 2008 global financial crisis put paid to previous efforts, including a deal on Deutsche Bahn.

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