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Together with Minister for Finance Kjell-Olof Feldt, the government turned a budget deficit of 90 billions SEK to a surplus of a few hundred billion SEK, which led to large investments and record low unemployment.
As governor of the West Coast of Sumatra, in 1843, Michiels had a serious clash with Eduard Douwes Dekker, who was then serving as controller at Natal (now in Mandailing Natal Regency, North Sumatra) because of a cash budget deficit.
The German budget deficit soared to 3.8%, the highest revenue shortfall among all the EU members at the time (also exceeding the 3% ceiling set by the EU's Stability Pact).