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Germany's economic model is not broken: Finance minister

But Europe's biggest economy has lost competitiveness for about a decade

Published: Mon 7 Oct 2024, 5:42 PM

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  • Reuters

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Christian Lindner says the government is introducing supply-side measures to return to growth. — Reuters

Christian Lindner says the government is introducing supply-side measures to return to growth. — Reuters

Germany's economic model is not broken but Europe's biggest economy has lost competitiveness for about a decade, German Finance Minister Christian Lindner said on Monday.

"We can't be satisfied with the economic developments in Germany," he told journalists ahead of a Eurogroup meeting.

The German economy is expected to contract by 0.2 per cent in 2024, an economy ministry spokesperson said on Monday, cutting the forecasts from a previous projection of 0.3 per cent growth this year.

Lindner said the government is introducing supply-side measures to return to growth.

"After these reforms, Germany will have more competitiveness again," Lindner said, adding that the growth initiative is just a first step for an economic turnaround, "but we have to build on it."



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