German Finance Minister Christian Lindner has emphasized the need for structural reforms to strengthen Germany’s competitiveness. He clarified that despite some economists labeling Germany as “the sick man of Europe,” he believes the country is more like 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.
Despite being considered healthy, Germany’s expected economic growth of 0.9% remains below the average for advanced economies in 2024 at 1.4%. Lindner highlighted that although the German economy is stable, it is not in the best shape and is currently experiencing a downturn similar to Britain’s. During the World Economic Forum in January, Germany was referred to as a “tired man” in need of structural reforms. Lindner specified that these reforms should include reducing red tape, attracting workers into the labor market, and mobilizing private investment.
In addition to stressing the importance of structural reforms for Germany’s future competitiveness, Lindner also highlighted the need for a single capital market for private investment within the European Union. He believes this solution would be more viable than providing subsidies continuously, as no economy can sustain extensive subsidy payments indefinitely.