German Finance Minister Christian Lindner spoke at an event at the London School of Economics and stated that Germany is not the sick man of Europe, but an unfit man in need of structural reforms to strengthen its competitiveness. He pointed to the weak economic growth in Germany compared to other euro zone peers and emphasized the need for reforms to address this issue.
The German economy, Europe’s largest, faced challenges such as high energy costs, feeble global orders, and record-high interest rates, leading some economists to refer to Germany as the “sick man of Europe.” With an expected economic growth of 0.9%, Germany is projected to lag behind the average of 1.4% for advanced economies in 2024, according to the International Monetary Fund.
Lindner compared the German economy to the British economy, stating that both are experiencing a downturn. He emphasized the need for reducing red tape, attracting workers into the labor market, and mobilizing private investment to improve the health of the German economy.
In addition to domestic reforms, Lindner highlighted the need for a single capital market for private investment in the EU, rather than relying on subsidies. He expressed concerns about the sustainability of subsidies in the long term, underscoring the importance of attracting private investment for economic growth.