Germany’s finance minister admits that his country is getting poorer
| The Minister of Finance of Germany has evaluated his country due to the lack of formation of economic growth on the path of increasing impoverishment. |
It acknowledged that it would be difficult to avoid the effects of a long period of low or no growth. Therefore, if this analysis is presented by the Minister of Economy and Finance, it is unthinkable for me that a government will not draw conclusions from this analysis. In 2024, the German economy was cut in half to 0.3%. This is only half of the average expectation in the euro area of 0.6 percent.
The German finance minister said: “It is clear to anyone with good intentions that all our social projects in Germany, including the current state of social security , our environmental projects require more spending for our external security, which can only be achieved with more economic prosperity and nothing else.
At the same time, the German finance minister once again spoke against the increase in government spending and He interfered with this issue. This German minister emphasized: We need an economic policy that works largely without money. He rejects Robert Haback’s proposal for a special fund worth billions to reduce the burden on companies.
The German economy is still in crisis. The OECD now expects growth of just 0.3 percent for the country in 2024, which is well below the EU average.
According to OECD forecasts, the German economy will once again lead the world in terms of growth this year. It is further back. On Monday, the agency cut its forecast for Germany’s GDP growth in half to 0.3 percent. Other major eurozone countries, France (0.6 percent), Italy (0.7 percent) and Spain (1.5 percent), are expected to outperform.
According to the Paris-based Organization for Economic Co-operation and Development (OECD) , other industrialized countries such as the United States (2.6 percent) and the United Kingdom (0.7 percent) are also likely to outperform Germany. Only Argentina is expected to perform significantly worse (-2.3 percent). For 2025, the OECD lowered its forecast for Germany from 1.2 to 1.1 percent, which means that the country will remain below the Eurozone average of 1.3 percent. Explaining the expected weak performance of Europe’s largest economy, he said: This is primarily because the energy industry weighs more on the German economy than on other Eurozone countries. For example, Germany was more dependent on Russian energy imports than France. This led to a further increase in energy prices in Germany after the Russian invasion of Ukraine. This continues to affect production in the energy industry.
In addition, the budget crisis has increased uncertainty for companies and households, Koske said. After the Constitutional Court’s ruling on the debt brake, the German federal government began a period of austerity. The crisis led to a decline in investment in the fourth quarter of 2023 and held back private consumption despite rising real wages. “The lack of skilled workers is the biggest problem for many German companies,” Koske said. Despite the current bad business situation, many companies have retained their workforce. According to OECD expert Robert Grundke, to restart the economy, finance the projects planned in the Transformation Fund and The climate after 2024 must be clarified to create planning security for companies and households. Grandke said: In order to accelerate energy transition and digitization, infrastructure planning and local administrative capacity must be improved and the administrative burden reduced.
| Publisher | Tasnim News |
|
