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18 September 2023 - 00:16
Scholz: New Debts Will Not Help German Economy

Germany’s Chancellor Olaf Scholz insisted that the problems his country’s economy currently faces cannot be solved by simply borrowing more money.

In an interview published by one German newspaper, Scholz admitted that Germany displays weak economic growth, with the chief reason for this allegedly being the weakening of certain foreign markets, such as China, which affects the “export-oriented” Germany, RIA Novosti reported.

The chancellor further noted that the rising energy prices and high inflation also do the German economy no favors, and that supply chain disruption during the COVID pandemic continues to take its toll on the economy.

Scholz also criticized an article in one British magazine that branded Germany as “the sick man of Europe” and called out the country over its “obsession with fiscal prudence”.

The chancellor refuted the criticism brought against Germany in the publication in question, noting that Berlin is essentially being advised to take out additional loans up to €200 billion a year.

Such solution, Scholz stated, would be unacceptable for Germany, with the chancellor insisting that new debts would simply create fresh problems instead of solving existing ones.

The German economy took a serious blow after Berlin joined the campaign of anti-Russian sanctions unleased by the United States last year over the escalation of the Ukrainian conflict.

Instead of bringing Russia’s economy to its knees as intended, this sanctions campaign backfired, doing more damage to the countries which imposed them than to Moscow.

News ID 196084

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