German Economy Minister warns of serious challenges in the coming months

German Economy Minister Robert Habeck said that his country will face serious challenges in the coming months in light of the current crises.

During a seminar for the Economic Forum of Chancellor Olaf Scholz's Social Democratic Party, Habeck said on Tuesday that the first two quarters were very good for many sectors, pointing to good growth rates again in sectors such as tourism, hospitality and services.

The minister, who also holds the position of Vice-Chancellor, expressed his belief that the pandemic has been repelled, and considered that "the present time is not so bad, but the fear of recession and of the future, and rather of the immediate future, is excessively large."

Habek pointed to the danger of a decline in purchasing power due to high energy prices, a decrease in internal demand, and a decline in companies' willingness to invest.

At the same time, the Green Party politician said that these scenarios were not laws of nature but could be “solved” through regulation, public funds, social compensation and other measures.

Habek stated that the state moved last year and prepared laws and that the state has proven itself as a political and societal system, and he believed that if the next two quarters are similar to the first two, “then this will be a great achievement that was not expected on the social and political level, but we must work to ensure that the matter does not get worse in any way.” Complete under extremely difficult conditions.

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