Germany’s Scholz: Germany has fiscal muscle to counter next crisis - Reuters
|Reuters reports the recent optimistic comments from Germany’s Finance Minister Olaf Scholz delivered at a government “open day” news conference on Sunday, in the face of increasing recession risks.
Key Headlines:
The debate about debt-financed spending but said a state should live within its means in economic good times, not least because this meant it would be better placed to act when things go wrong.
So if we have a debt level in Germany in relation to economic output that is below 60 percent, then this is the strength we have to counter a crisis with full force.
The global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros.
And we have to be able to muster that (sum of money). And we can muster that. That’s the good news.
The biggest problem is uncertainty, including that caused by the Chinese-U.S. trade war.
Meanwhile, the EUR/USD pair is likely to remain under pressure amid increased expectations of an ECB stimulus to keep the economy on track amid lingering US-China trade fears and Brexit risks.
Also Read:
Germany ready to take on new debt to counter possible recession - Spiegel
Germany to urge EU member states to refuse to renegotiate Brexit deal - The Guardian
Rising concerns following GDP figures in EMU and Germany – UOB
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.