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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hits two-month lows amid USD strength

EUR/USD has pared its gains that followed upbeat preliminary PMIs for Germany came out above expectations, pointing to a recovery. The USD is advancing amid fears of the coronavirus.

EUR/USD News

GBP/USD drops below 1.31 amid USD strength, fails to sustain PMI gains

GBP/USD is trading below  1.31 after hitting a fresh high of 1.3172. The UK Manufacturing PMI beat with 49.8 and Services PMI with 52.9. The USD is gaining ground across the board.

GBP/USD News

Cryptos: Bears take over and draw a bloody moon

Despite appearances, Bitcoin is the asset with the best risk/benefit ratio. The current falls are adjusted to the ranges of the previous rise. Downward momentum expires in the first half of February.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

USD/JPY drops to two-week lows near 109.30

The USD/JPY pair reversed its direction during the American trading hours as the risk-off atmosphere allowed the JPY to find demand as a safe-haven.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures