Ursula von der Leyen has issued a stark warning about the future of the euro as Germany’s economy continues to slump.
The Business Europe Lobby today calls on political leaders to “put competitiveness at the forefront”.
This took place today as finance ministers from countries that adopted the euro met to discuss the economic situation in the euro area.
“We need to address Europe’s declining investment attractiveness,” the two leaders said, warning that “maintaining a strong economy is necessary to protect the European way of life and Europe’s interests abroad.” Be looked at.
ING economist Carsten Brzeski warned that Germany was like the “sick man of Europe”.
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They are expected to call on the EU to shift from “five years of increased state economic intervention that has led to a significant increase in public spending”.
Germany’s economy will contract in the third quarter of 2023, raising fears that the EU’s largest economy is heading into recession.
GDP decreased by 0.1% from the previous three months, likely due to a decline in household spending.
Although the decline in GDP was smaller than the expected 0.2% decline, it is still a cause for concern about the economic situation.
ING economist Carsten Brzeski warned that Germany was like the “sick man of Europe”.
He told the Telegraph: “Cyclical headwinds such as the European Central Bank’s tight monetary policy, the still-unspreading effects of high inflation, and China’s economic stagnation are compounded by structural headwinds such as the energy transition and changes in the global economy. We are facing challenges: lack of investment in digitalisation, infrastructure and education;
“Most of Germany’s problems are homegrown.
“The supply chain frictions associated with the pandemic, the war in Ukraine, and the energy crisis have only exposed these structural weaknesses.
“These deficiencies are the flip side of the past decade of austerity and misguided policy preferences.”
European Central Bank President Christine Lagarde has warned that the conflict between Israel and Hamas could exacerbate economic struggles across Europe.
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European Central Bank President Christine Lagarde has warned that the conflict between Israel and Hamas could exacerbate economic struggles across Europe.
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“This could reduce confidence and increase uncertainty for businesses and households about the future, further slowing growth,” he said.
Meanwhile, Marco Valli, UniCredit’s chief European economist, told CNBC that recovery from the economic downturn “will be slow.”
Asked if this year would be an easy year for the euro, he said: “No, definitely not.”