German Finance Minister Christian Lindner has spoken out about the need for structural reforms to strengthen Germany’s competitiveness. He emphasized that Germany is not the sick man of Europe, but rather an unfit man in need of improvement. Despite being considered healthy, Germany’s 0.9% expected economic growth remains well below the 1.4% average for advanced economies in 2024. This led some economists to label Germany as “the sick man of Europe.”
However, Lindner highlighted that although the German economy is healthy, it is not in the best shape and is currently in a downturn, similar to the British economy. During the World Economic Forum in January, Germany was referred to as a “tired man” in need of structural reforms. Lindner specified that the country needs to reduce red tape, attract workers into the labor market, and mobilize private investment.
In addition to emphasizing the need for structural reforms in Germany, Lindner also highlighted the importance of creating a single capital market for private investment in the European Union. He believes that this is a more viable solution than continually providing subsidies, as it is unlikely that any economy can sustain extensive subsidy payments.