Germany is flirting with a recession that may usher in a new era of feeble growth, says Breakingviews Olaf Storbeck.
That's why I question this critique this morning from breaking views of the way Germany's handling. Or notes it's fading economic miracle all offshore back. Has written this piece of breaking Busan joins in the studio I'm it's tough spot. Then you've been actually in a while on Jim and Pam why suddenly now. Well I'm not sure it's really tough I mean after criticizing the term economic problems fee. Four for many months into corners and thought it swift program. I think what what becomes visible on soldiers and dollars for event. We read the garnered her fame to his throws and yes. Angela Merkel and this is a quote from a piece has no one can not participating yes. And what what what what what you do. Well first of all of a good they're good they should do it stiff from old boy if you're reaching carted off of having Ben and budget which is that the kind of the guiding principal recruits and for the coming years. And they probably should drone Beckman. And her social policies which which would let up for throw for costs. Re okay yeah you don't you say it prop up public infrastructure spending program. And reining in the expansion of the welfare states are. Should be the priorities right exactly. OK so let's just look at some of the the the predictions. Country's leading economic think tank says 1% twelve and fifteen growth. Bundestag is clearly I'm abroad packets are in full costs a bit. Ancient whenever the labor market and the labor market reforms we used to hole Germany off. Really has as the the best in show it. No well they have done clogged credit significant reforms a decade ago and these reforms have firm hunters are meaningfully affect our. Making very little market more efficient and and in increased. For working in tennis for four unemployed. But you yeah I get the feeling good these reforms are just wrong it's coleslaw. And even live in the last year we've seen rising employment Hamas for the unemployment growth as well. Long term unemployment is fifty privy father thought there isn't it smoked not decreasing any fun not sit. Paradox of rising employment rising unemployment continues. Yet it's rare according to the full cost of these leading economic think thanks to retrieve begin next year I'll. And this shows that we really prefer food fishing stupid this structural problems in the literal market scoop scoop from the outside and it did it. Do journalists columnists assignment we do from our side it com. Is it a position to put pressure on Japanese do the right. To. Very hard to guard and many whom I'm. Even if you were outside of what put pressure on and on the long term on the German government. The coalition if clients. You unified on this theme even the social Democrats are sticking to a defense budget tolerance. Good pitch achieved through parts him served president. Clinton had to period Christian there's usually and he was really he was there total floor and in very harsh terms five by the party had so. You determine if fund dollars review. On on the. Course are you hopeful that that they will but Merkel will get to grips with us what what will be that catalyst. To see them achieve what you sit before you suggest they should do it. Well I think they were probably have to give up due to burns sponsor target because otherwise there would have to approve all prosecute current fiscal policy cutting spending. And it was in an economic on time which. Probably they want to. Putt from that I'm I'm not very helpful to be honest I think there would stick to stick his artistic talent and keep your career and it. Probably your work and then then you couldn't see. Significant on times. Right or left many things like you can find out that's he's by the way on the at the break and be signed in front all the relations columns not yet kept puts into August cheap a couple of the other columns and has written on the on the site as well. The US has talked cities and 1730 London time I'm X pro.