World

German Finance Minister Signals Readiness to Pump ‘Billions of Euros’ Into Economy in Face of Crisis

Although there is no current economic crisis, Olaf Scholz, who represents the Social Democrats, opines that as Europe’s largest economy, Berlin could carry the burden if a recession breaks out in Germany and the bloc. Concerns about a possible recession have been fueled by a second quarter contraction in the nation's economy.
Sputnik

German Finance Minister Olaf Scholz hinted that Berlin could channel billions of euros into the EU economy if the bloc were to face a crisis, as he spoke to the  Bundestag during a budget debate. He pointed out Germany’s role as the “largest economy in the middle of the European Union.”

"And from my point of view, therefore, with the solid financial foundations we have today, we are in a position to counter an economic crisis with many, many billions of euros if one actually breaks out in Germany and Europe," the official said, noting “We'll really do it then.”

Angela Merkel’s minister dubbed it “an active policy against the crisis," reassuring lawmakers, however, that there is no recession currently.

Concerns about a possible recession in the July-September period were prompted by weak data and a 0.1 percent quarter-on-quarter contraction of the German economy for the second quarter.

Discuss