German Finance Minister Christian Lindner spoke on Monday about the importance of structural reforms to strengthen Germany’s competitiveness. He emphasized that while Germany is not the sick man of Europe, it is 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. This led some economists to label Germany as “the sick man of Europe.”
Despite being considered healthy, Germany’s 0.9% expected economic growth remains well below the 1.4% average for advanced economies in 2024. Lindner highlighted 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. Germany was referred to as a “tired man” in need of structural reforms during the World Economic Forum in January, and Lindner specified that the country needs to reduce red tape, attract workers into the labor market, and mobilize private investment.
Lindner also emphasized 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.