German Finance Minister Christian Lindner addressed concerns about Germany’s economic health in a speech at the London School of Economics. He rejected the idea that Germany is the “sick man of Europe”, but acknowledged that the country needs structural reforms to improve its competitiveness.
Lindner compared the situation in Germany with the British economy, which is also experiencing a decline. He emphasized the need for Germany to reduce bureaucracy, attract workers to the labor market and mobilize private investment. He also argued for a single capital market for private investment in the EU, rather than relying on subsidies in the long term.
Germany’s economy, which is Europe’s largest, struggled last year due to factors such as high energy costs, weak global orders and record high interest rates. This has led some economists to characterize Germany as the “sick man of Europe”. Despite this, Germany’s economic growth is forecast to remain below the average for advanced economies in 2024.
Overall, Lindner stressed that while the German economy is healthy, it is not in the best shape. He emphasized the need for structural reforms to strengthen the country’s competitiveness and position in Europe.