IMF calls for more investment in Germany and less debt in Southern Europe
The International Monetary Fund (IMF) has called for massive government investment despite the budget crisis in Germany. "To ensure growth, Germany must invest in its infrastructure, the green restructuring of the economy and in the skills of its population," said IMF chief Kristalina Georgieva in an interview with several European newspapers, including Handelsblatt. However, she called on Italy, France and Spain to get their national debt under control.
The response to the corona crisis in the three countries was appropriate, "but it led to rising debts and deficits", Georgieva said, according to the Italian newspaper "Corriere della Sera". For Italy, "the problem is exacerbated by the slowdown in growth as a result of the withdrawal of political support measures".
France is in a more comfortable position due to better economic development. But there, too, there must be "a turning point" towards more budgetary discipline. Spain has benefited from a strong recovery in the service and tourism sector. The budgetary situation there is acceptable as long as the support measures that expire at the end of the year are not extended.
In contrast, the IMF chief expects Germany to primarily increase spending. "We are not talking about trivial investments here - especially because the next step is to adapt the economy to artificial intelligence," she said, according to Handelsblatt.
- Despite the budget crisis in Germany, the IMF advocates for significant government investments in infrastructure, the green transformation of the economy, and the education of its population to stimulate growth.
- Contrastingly, the IMF urges Italy, France, and Spain to manage their debts more effectively, as they have seen an increase in debts and deficits due to their responses to the coronavirus crisis.
- Recognizing Germany's strength in artificial intelligence, the IMF encourages the country to make substantial investments in this area to adapt its economy, going beyond mere trivial expenditures.
Source: www.ntv.de
