Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

German Economy Head Reich stands for a roadmap to end up shock

May 09, 2025, Bavaria, Gmund A.M. Tehers: Catherine Reich (CDU), Federal Minister of Economic Affairs and Energy, takes part in the Ludwig Erhard summit. Representatives of business, politics, science and the media take part in a three -day summit. Photo credit: Sven Hoppe/Dpa (photo Sven Hoppe/Picture Alliance via Getty Images)

Drawing alliance Drawing alliance Gets the image

Germany should risk and increase its stagnant economy for decades of investment in infrastructure, Ekaterina Reich, Minister of Economic Affairs and Energy, said on Friday.

“The next decade will be a decade of investment in infrastructure in bridges, in energy infrastructure, in storage, in maritime infrastructure … telecommunications. And for this we need speed and investment, and we need private capital,” – said Reiche Annette Weisbach Summit.

While 10% of investments can be taken care of by state money, the remaining 90% relied on the private sector, she said.

The recently minted Economy Minister also resorted to regulation from Brussels, warning that it could interfere with investment and startup companies if it is too restrictive. Germany had to find out what investments were coming with risks, “and we should be open for more risks,” she said.

See a complete interview CNBC with German Economy Minister Catherine Reic

The beginning of regulatory changes will actually be one of the most important jobs for the new German government, Veronica Grimm, a member of the German Council of Economic Experts, the CNBC reported on the sidelines of the Tehars Summit.

“It will be important to adjust the adjustment, so removal or change of innovation regulations, so that it can be again in many areas of technology,” she said in the comments translated by CNBC.

“And of course, it is about improving the environment or businesses, making it more attractive so that we are again competitive,” Grimm said.

On the edge of the recession

Germany’s economy has slightly declined on Annual basis In 2023 and 2024 and a quarterly gross domestic product, it has been flipped between the growth and reduction for more than two years, only to avoid the technical recession. Preliminary data for The first quarter Since 2025, she showed an extension of 0.2%.

Forecasts do not believe that last month last month last month this year was stagnant a large number of letters of lethargy.

“This country requires an economic turn. After a two -year recession, the previous government had to declare again (a) year of growth for 2025, and we really have to work on it. So, the top of the agenda is the Buster of investors,” said Economy Minister Reiche.

Reduction of energy prices, energy safety stabilization and bureaucracy reducing were one of the key points on the agenda, she added.

It is despite The main financial reversal Announced earlier this year, which included changes to long -standing debt in the country, which allow for additional protection costs and 500 billion euros (562.4 billion) infrastructure.

Several key branches of Germany are under pressure. For example, the automotive industry deals with sharp competition from China, and now faces tariffs, while the problems in the construction and infrastructure were linked to higher costs and bureaucratic obstacles.

Trade is also a key pillar for the German economy, and therefore the uncertainty by US President Donald Trump, which is changing tariff policy, largely weighs the worldview.

Source link