- Habeck to ZEW index: Economic crisis is getting worse
German Economics Minister Robert Habeck (Greens) reacted worriedly to the latest sentiment indicator from the ZEW research institute. The economic expectations of financial experts have deteriorated much more than expected in August. The ZEW barometer fell by 22.6 points to 19.2 points compared to the previous month, as announced by the Center for European Economic Research (ZEW) in Mannheim. According to economists, hope for a recovery is fading.
Habeck expresses dissatisfaction
"The economic crisis is becoming increasingly entrenched at a stagnation level that cannot satisfy anyone," Habeck said in Bremen. "And the measures taken so far are not sufficient to overcome high interest rates, the lack of foreign demand, and also the structural problems we have in Germany."
Now, the implementation of the growth package of the traffic light government is necessary, Habeck explained. This has addressed many "concerns, wishes, and complaints of the German economy." "Therefore, my urgent advice, wish, and work is to implement this quickly. This will already have an effect." It remains to be seen whether further answers can be found with more free trade agreements, more investments, or better depreciation models - perhaps also during the election campaign.
ZEW President sees high uncertainty
"The economic outlook for Germany is deteriorating," commented ZEW President Achim Wambach on the data. "This suggests that economic expectations will continue to be under the influence of high uncertainty, driven by unclear monetary policy, disappointing business figures from the US economy, and growing concerns about an escalation of the Middle East conflict."
This was the second consecutive decline in economic expectations. The assessment of the current economic situation also deteriorated in August. Recently, a series of leading indicators for the German economy have weakened. In addition, there were turmoil on the financial markets last week. Concerns about the US economy are increasing.
Habeck emphasizes the need for the Economic and Monetary Union to address Germany's challenges, saying, "Given the current crisis, it's crucial that we fully utilize the potential of the Economic and Monetary Union to tackle high interest rates, foreign demand issues, and our structural problems."
Wambach, expressing his concerns about the ZEW data, mentions, "The ongoing deterioration in economic expectations suggests that the Economic and Monetary Union might need to reconsider its strategies in light of high uncertainty, inadequate monetary policy, weakening business figures from the US, and escalating concerns over the Middle East conflict."
