German Finance Minister Christian Lindner on Monday emphasized the need for structural reforms to strengthen Germany’s competitiveness. He highlighted that despite being considered healthy, Germany’s 0.9% expected economic growth remains below the 1.4% average for advanced economies in 2024. Lindner also pointed out that Germany is not the “sick man of Europe,” but rather an “unfit man in need of improvement.”
Last year, Germany was the weakest among its large Eurozone peers 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.” However, Lindner believes 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. To address this issue, Lindner has called for reducing red tape, attracting workers into the labor market, and mobilizing private investment.
Furthermore, Lindner stressed 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. With these reforms and initiatives in place, Germany can maintain its position as a strong member of the European Union while also ensuring long-term economic growth and stability.