After months of discussion about whether Europe's traditional powerhouse had turned into the "sick man of Europe," Germany's finance minister on Friday put up a fresh analogy for his nation's struggling economy.
“I know what some of you are thinking, Germany probably is a sick man. Germany is not the sick man,” Christian Lindner told World Economic Forum delegates in Davos, Switzerland, at a Bloomberg panel on Friday.
"Germany is a tired man after a short night," Lindner remarked, "after a very successful period since 2012 and this year of crisis."
Last year, there were renewed references to Germany as the "sick man of Europe." Despite avoiding a recession at the end of 2023, the economy contracted by 0.3% annually as a result of rising oil prices, inflation, and interest rates. In 2023, Germany's manufacturing output fell by 2%, excluding construction.
When Germany was navigating the expensive hurdles of a post-reunification economy in 1998, the phrase "sick man" was first applied to the country's economy.
According to Lindner, "we have a good cup of coffee, which means structural reforms, and then we will be continuing to succeed economically." Low growth prospects, he added, are partially a wake-up call.
According to research firm Capital Economics, the German economy is expected to experience a prolonged period of decline, with no growth predicted for the nation until 2024.
After a constitutional court declared that Germany's reallocation of unneeded debt was unlawful due to the country's fiscal regulations, the government was left with a budgetary crisis at the end of last year.
Germany reached a budget agreement after negotiations that maintained debt limits through 2024. The administration wants to reduce costs and stop funding programmes that harm the environment in order to save 17 billion euros ($18.51 billion) in the budget.
"We had to solve our debt and deficit issues, which has made me... the loneliest minister in Cabinet, but we succeeded to solve our debt issues," Lindner remarked at the WEF panel on the state of the world economy on Friday.
(Sourec:www.ft.com)
“I know what some of you are thinking, Germany probably is a sick man. Germany is not the sick man,” Christian Lindner told World Economic Forum delegates in Davos, Switzerland, at a Bloomberg panel on Friday.
"Germany is a tired man after a short night," Lindner remarked, "after a very successful period since 2012 and this year of crisis."
Last year, there were renewed references to Germany as the "sick man of Europe." Despite avoiding a recession at the end of 2023, the economy contracted by 0.3% annually as a result of rising oil prices, inflation, and interest rates. In 2023, Germany's manufacturing output fell by 2%, excluding construction.
When Germany was navigating the expensive hurdles of a post-reunification economy in 1998, the phrase "sick man" was first applied to the country's economy.
According to Lindner, "we have a good cup of coffee, which means structural reforms, and then we will be continuing to succeed economically." Low growth prospects, he added, are partially a wake-up call.
According to research firm Capital Economics, the German economy is expected to experience a prolonged period of decline, with no growth predicted for the nation until 2024.
After a constitutional court declared that Germany's reallocation of unneeded debt was unlawful due to the country's fiscal regulations, the government was left with a budgetary crisis at the end of last year.
Germany reached a budget agreement after negotiations that maintained debt limits through 2024. The administration wants to reduce costs and stop funding programmes that harm the environment in order to save 17 billion euros ($18.51 billion) in the budget.
"We had to solve our debt and deficit issues, which has made me... the loneliest minister in Cabinet, but we succeeded to solve our debt issues," Lindner remarked at the WEF panel on the state of the world economy on Friday.
(Sourec:www.ft.com)
