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The German Ministry of Economy published this Wednesday, February 21, the results of the annual economic report, anticipating an expected increase in private consumption throughout the year. However, for the official in charge of that portfolio, the country's economy remains in a complicated situation. The German Government was also open to confirming the European Union (EU) agreement with Mercosur, despite the misgivings of countries like France.
The economic situation in Germany is extremely challenging, according to the statements of the Minister of Economy, Robert Habeck, during the presentation of the annual economic report, this Wednesday, February 21.
“The situation is extremely challenging. We must address reforms and reinforce them to strengthen and maintain Germany's competitiveness in a totally different global environment,” the economic portfolio official said in a press conference. Meanwhile, he maintained that he has “hopes that this economic report can make a contribution.”
In the report, the Government expects economic growth of 1% for next year, compared to 0.2% in 2024. Meanwhile, they expect inflation to reach 2.8% this year and 2% in 2025.
In that same conference, Habeck referred to the negotiations of the trade agreement between the European Union and Mercosur and maintained that he seeks to convince the French Government to support the initiative, since it is “the best thing” to “leave the way clear.”
French President Emmanuel Macron considered at the end of January before the European Commission that it was impossible to conclude negotiations on a trade agreement.
All this, in the face of pressure from French farmers, who have been showing their discontent and opposition to the ongoing talks on a trade agreement between the EU and the Mercosur nations, which, they say, would allow cheap food imports that do not comply with the strict standards of Europe.
With Reuters.
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