• Mon. Mar 4th, 2024

Germany’s Finance Minister Advocates for Structural Reforms to Boost Competitiveness

ByEditor

Feb 13, 2024
Germany’s economy is not in good shape, says finance minister

German Finance Minister Christian Lindner spoke on Monday about the importance of structural reforms in strengthening Germany’s competitiveness. He emphasized that Germany is not the sick man of Europe, but rather an unfit man in need of improvement. The German economy was the weakest among its large Eurozone peers last year due to high energy costs, feeble global orders, and record-high interest rates. This led some economists to label Germany as “the sick man of Europe.”

Despite the economy being considered healthy, Germany’s 0.9% expected economic growth remains well below the 1.4% average for advanced economies in 2024. Lindner highlighted that although the German economy is healthy, it is not in the best shape and is currently in a downturn, similar to the British economy. During the World Economic Forum in January, Germany was referred to as a “tired man” in need of structural reforms. Lindner specified that the country needs to reduce red tape, attract workers into the labor market, and mobilize private investment.

In addition to emphasizing the need for structural reforms in Germany, Lindner also highlighted the importance of creating a single capital market for private investment in the European Union. He believes that this is a more viable solution than continually providing subsidies, as it is unlikely that any economy can sustain extensive subsidy payments.

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