What is happening with the German economy and how it can emerge from the crisis, one of the country’s most influential economists, Clemens Fuest, answers these and other questions in an interview published on February 20 in the newspaper Augsburger allgemeine.
According to one of the country’s most influential economists, Ifo Institute director Clemens Fuest, business sentiment in Germany is as bad as it was at the height of the coronavirus crisis.
“The German economy is suffering from a number of stress factors. People can survive stress, but the large number of stressful situations becomes a big problem. This starts with high energy prices, continues with high interest rates, and affects an industry that is not doing well around the world. There are also special problems in Germany: bureaucracy has increased significantly in recent years, with one bureaucratic shock after another. The tax burden is very high compared to other countries and the labor supply is increasingly scarce. On top of that, we see enormous uncertainty in the economy regarding the direction of policy.” – said the economist.
Fuest believes that political uncertainty is hindering business development. “If companies don’t know exactly where policy is headed, they delay major investments or invest abroad.” – he said in an interview.
To solve the country’s economic crisis, according to Fuest, decisive action is needed, but the ruling coalition is not capable of resolving even its internal problems and disagreements. “Germany can solve its problems, but they must be solved now.” – said the economist.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.