Germany reduced its forecast from 1.8% to 1.2% by the break … – The País.com (Spain)

Germany reduced its forecast from 1.8% to 1.2% by the break … – The País.com (Spain)

German Chancellor Angela Merkel. / Krisztian Bocsi (Bloomberg)

Experts and organizations like the International Monetary Fund had long warning. And today was confirmed by the German Government, the first euro economy is in a worse situation than expected. The economy minister, Social Democrat Sigmar Gabriel, has announced that this year the economy will grow by 1.2% (instead of 1.8% forecast so far); the forecast for 2015 is raised slightly to 1.3% (versus 2% previously). Gabriel has offered only one plagued technical discourse figures. It has taken the presentation of the new landscape of the German economy to launch a political message of the first magnitude. “There is no reason to change our economic and fiscal policy,” he stressed.

Number two Angela Merkel Government and leader of the Social Democrats has thrown a bucket of water cold on those who claim him from his own party a shift in the politics of austerity. “Indebted more to Germany is not going to generate more growth in Italy, France, Spain or Greece,” he responded to those who recommend that the Government of grand coalition between Christian Democrats and Social Democrats react to the worsening situation and invest more to boost growth . The minister believes that the problems come from outside, and are countries like France and Italy who have to boost growth-friendly reforms rather than Berlin remove the checkbook to redress the situation.

“Especially Europe. ” Gabriel replied to the question of the factors behind the slowdown in the economy. “The geopolitical crisis (mainly Ukraine) has increased uncertainty in Germany and slow global growth is weighing on the economy,” he added.

In the face of external shocks, the government sees hope in factors house. Domestic demand and the labor market are showing signs of strength. And decisions of the grand coalition, such as the introduction of a minimum wage, help increase disposable income. “Citizens will have more money in your pocket,” has prided itself.

The minister has been forced to make lace by offering a positive message on announcing a drastic revision of its forecast growth as increasing fears the country back into recession in the third quarter. “As soon as the global economy recovers, the competitiveness of German companies offer off and the economy will return to robust growth path,” he added.