Annual report of the German Ministry of Economy on the dire economic conditions
| In its annual report, the German Ministry of Economy assessed the country's economy in difficult conditions and addressed the reasons for this, including the increase in energy prices due to the war in Ukraine. |
In the fall forecast, the government expected growth of 1.3 percent. Last year, the German economy went into recession.
According to Haubeck, the reasons for Germany’s cloudy economic situation are the historically low growth of world trade, which is especially difficult for an exporting country like Germany, as well as high interest rates that prevent He also pointed to the austerity measures of the federal government following the budget ruling by the Federal Constitutional Court. Hoback also pointed to the structural problems in Germany that had been created for many years. A “reform booster” is needed and the federal government must work on it now, he stressed. For example, Haback cited a labor shortage.
However, the Traffic Light Coalition has mixed ideas about additional assistance. Haback had proposed a special fund worth billions of dollars, which, of course, the Liberal Democratic Party in the coalition government rejected. The growth package already approved by the Bundestag is also at risk of failure due to the resistance of the Christian United Party Union.
Hobeck also criticized the Christian United Party Union’s proposals to stimulate the economy. According to him, these are based on unrealistic assumptions. The German official said in Berlin on Wednesday that he found it “politically really annoying” that not all of the ideas were co-funded. This is “not a robust approach”. He noted that this problem will continue to worsen. According to the German Minister of Economy, the biggest structural problem in Germany is the lack of skilled workers. He also said: The immigration rate is an important factor in overcoming the challenges. You should see immigrants as “friends and Germans”. Otherwise, “the German economy is in danger of collapsing”.
Hobeck said regarding the security situation: If you walk around the Munich security conference with your ears open, you will realize that Europe should do its homework in a way to do completely differently.
He also pointed to the high energy costs in Germany and explained that energy prices have not yet reached where we want, but we can be more confident than a few months ago. Let’s look at them.
According to the German economy minister, another reason for Germany’s lower growth compared to other countries is the existence of an energy-intensive industry. He added: “They depend on Russian gas, which has now disappeared.”
| Publisher | Tasnim News |
