In a speech at the London School of Economics, German Finance Minister Christian Lindner addressed concerns about Germany’s economic health. He rejected the notion that Germany is the sick man of Europe, but acknowledged that the country needs structural reforms to improve its competitiveness.
Despite Germany’s economy being the largest in Europe, it struggled last year due to factors such as high energy costs, weak global orders and record-high interest rates. This led some economists to characterize Germany as “the sick man of Europe.” However, despite this setback, Germany’s economic growth is projected to remain below the average for advanced economies in 2024.
Lindner compared Germany’s situation to that of Britain’s economy, which is also facing difficulties. He emphasized the need for Germany to reduce red tape, attract workers into the labor market and mobilize private investment. He also advocated for a single capital market for private investment in the EU rather than relying on subsidies in the long term.
In summary, Lindner stressed that while Germany’s economy is strong, it requires structural reforms to strengthen its competitiveness and position within Europe.