BERLIN (MNI) – Germany’s Economy Minister Rainer Bruederle said
Thursday that only expenditures with no impact on economic growth should
be cut.
“Without growth we won’t be able to consolidate budgets,”
Bruederle told German public television ZDF.
“25% of our production capacities are not utilized,” the Minister
remarked. “We have to strengthen this, everything is oriented towards
that.” He called for an “intelligent” consolidation that supports
growth.
The President of the Kiel-based IfW economic research institute,
Dennis Snower, noted in an interview with German daily Bild published
Thursday that the German upswing is not yet stable. “Strict
consolidation measures would therefore be dangerous and could lead to a
new recession,” he warned.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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