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Economics Minister Robert Habeck: “The energy supply is secure”

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Federal Minister of Economics Robert Habeck also sees signs of hope despite the significantly lower growth forecasts.

“The energy supply is secure,” said the Green politician in the Bundestag on Thursday.

The gas storage facilities are full even in winter.

Gas prices are roughly back to the level before Russia's attack on Ukraine almost two years ago.

The situation is likely to get even better in 2025.

“Gas prices will go down.” That means more production in the energy-intensive industry again.

In addition, inflation in Germany will approach the two percent mark by the end of 2024, which is considered optimal for the economy, Habeck added.

"With falling inflation, the prospects of interest rate cuts this year have become realistic." It is unclear when and to what extent this will happen.

But there will be more incentives for investments again.

more on the subject

  • Annual economic report: Habeck sees the German economy in “difficult waters”

  • Stagnant Growth Opportunities Act: Business is pushing for quick relief

Germany is by far the country with the strongest exports in Europe, said Habeck.

The historic low in international exports is causing problems for Germany.

Protectionism is emerging everywhere and it won't necessarily get better in the near future.

“Protectionism not only harms the economy, it harms prosperity and thus the ability to overcome poverty in the world,” said Habeck.

It is Germany's job to ensure that this nationalism is overcome in trade.

Habeck also addressed the “very high sickness rate last year.”

"I won't repeat the numbers here, I think they're too high, but it will have had an effect."

A lot came together so that the good growth forecast of 1.3 percent could not be maintained.

Fear of demographic change

The labor gap is also so large.

There are 700,000 registered vacancies and probably more.

Demographic change is “fully impacting”.

It is the main structural threat to prosperity and growth.

A better immigration policy will also help.

One should not send signals that all people who are not named “Müller, Meyer or Habeck” should be deported;

that is “economic madness”.

Instead, they need to be better integrated into the labor market.

Habeck also appealed to the Union to give the Federal Council the green light to the Growth Opportunities Act.

Most recently, the mediation committee between the Bundesrat and the Bundestag only passed the law with the votes of the traffic light parties.

In its annual economic report, the government significantly reduced its growth forecast for this year from 1.3 percent to just 0.2 percent.

Dobrindt calls the annual economic report a “declaration of bankruptcy” by the traffic light

In the Bundestag debate, CSU regional group leader Alexander Dobrindt blamed Habeck for the gloomy situation in the German economy.

“Germany is absolutely at the bottom of the league in Europe, and you bear a significant share of responsibility for that, Minister,” said Dobrindt.

“This is not an annual economic report, but rather this traffic light government’s declaration of economic bankruptcy,” said Dobrindt.

»The way we interact with each other at traffic lights, including when it comes to questions of economic policy, moves between brawling and a loss of reality.

But that’s not how you fight a recession, that’s how you create a depression in the country.”

Dobrindt explained that the recession was not a global or European one, but a German one.

»All of our neighbors have the same crises, but greater growth.

It is your responsibility and not the world crisis.

With a view to the controversial growth package, the CSU politician explained: “You want 1.4 billion euros in relief with your Growth Opportunities Act.

At the same time, you want to involve agriculture in this refinancing and relief with 500 million euros and burden it.

This is an injustice that we cannot accept.«

mfh/Reuters