German Finance Minister Christian Lindner stated at an event at the London School of Economics that Germany is not the sick man of Europe, but rather an unfit man in need of structural reforms. Last year, Germany’s economy, the largest in Europe, was the weakest among its euro zone peers due to high energy costs, weak global orders, and record-high interest rates, leading some economists to label it as the “sick man of Europe.”
Despite this setback, Lindner emphasized that although the German economy is healthy, it is not in the best shape and is currently in a downturn. To address these challenges, he proposed several structural reforms that aim to reduce red tape and attract workers into the labor market. Lindner also mentioned the need for a single capital market for private investment in the EU, rather than relying on subsidies.
According to forecasts by the International Monetary Fund (IMF), German economic growth is expected to remain at 0.9% in 2024, well below the average of 1.4% for advanced economies. However, Lindner remains optimistic about Germany’s future prospects and believes that with these reforms in place, it can overcome its current challenges and continue to be a major player in Europe’s economic landscape.