Wednesday, January 28, 2015

Government warns against risks confidence despite growth – Reuters Germany

Government warns against risks confidence despite growth – Reuters Germany

Berlin (Reuters) – The Federal Government warns despite an increase in its growth forecast because of a variety of risks, such as the future of Greece to the economic outlook for caution.

In the new Annual Economic Report, the government increased its 2015 forecast by 0.2 percentage points to 1.5 percent, saying at the same time an employment record of 42.8 million people ahead. Economy Minister Sigmar Gabriel warned on Wednesday at the launch of the report, however: “I would advise you not to accept the GDP figures set and given.” There are many uncertainties. Existentially is dependent on a good development and stability in Europe Germany. And to secure future growth, more should be invested.

“The German economy is in good shape – we but may make no illusions about the challenges, “Gabriel said. With an expected growth of 1.5 percent, the development was relatively low and stable over the previous year. A moderate confidence is also nourished by the German Institute for Economic Research (DIW), the count as the first quarter of the new year, with growth of 0.2 percent for the last quarter of 2014.. The demand is growing. The consumer climate in Germany reached by Numbers Nuremberg Association for Consumer Research (GfK) in February, the highest since more than 13 years.


The new economic report entitled “Investing in Germany and Europe’s future.” This underlines the federal government their willingness to provide more public and private investment. “The key question is how we manage to improve the investment activities in Germany and Europe,” Gabriel said. EU investment program of President Jean-Claude Juncker, he assured full support. Whether Germany is still reloading on the promised increase its national investment for another ten billion euros, the economy minister left open.

The German economy has accused the government too much restraint. The Chief Executive of the industry association BDI, Markus Kerber, asked: “For growth to continue, we need a long-term investment program in Germany.” The current public spending were “modest”. Kerber’s colleague from the German Chambers of Industry and Commerce (DIHK), Martin Wansleben, said: “Germany has an investment gap of 80 billion euros.” Therefore more growth momentum we need more commitment. These suggested Wansleben shifts in public budgets before in favor of more investment.


Gabriel took the government claim that the citizens of the stable growth benefited. Thus, the employment this year will rise by another 170,000 people and decrease the number of unemployed by 40,000. Should go hand in hand with an increase in the wages and salaries by 2.7 percent.

Whether the development in Greece grows into one of the major risks for Germany and the Euro-zone, the minister left open. “We have the opportunity that this does not happen,” he said. However, he warned the new Greek government under the leadership of the Left Party SYRIZA to comply with promises and not shift burdens to other countries. Fairness and solidarity there must be in both directions – towards Greece and across the donor countries, which would have helped the partners with EUR 278 billion. A waiver of the lender does not see Gabriel, and the question of whether the country remains in the euro, priority must be decided by the Greek government.


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