The German government needs to make more public investment. Otherwise, the future of Europe will be at stake.
The warning was given by finance minister Bruno Le Mair to his German counterpart Olaf Scholz in Italy at the Ambrosetti Forum, the Financial Times writes on Sunday.
"Germany has to invest more now to stimulate growth in its economy and the Eurozone as a whole," he said. "Lack of investment means the absence of a future and the ability to believe that a new future is possible. ”He added.
Le Mair stressed that the German executive has the budgetary margin to invest more and must do so now to show "solidarity" with the rest of the Eurozone, although GDP contracted by 0.1% in the last quarter.
The German government has already been publicly pressured to increase public investment by the European Commission, resulting in the opening of an investigation to see if it would have an excessive (positive) macroeconomic imbalance, but the analysis was terminated without this conclusion being reached.
Major international institutions, such as the International Monetary Fund, have also insisted on the need for countries with the budgetary margin to invest to do so.
The finance minister said German companies recognized the need for more investment in the economy and confessed that Berlin, along with Paris and Rome, would eventually change their minds:
“I know Germany very well. In the first play, Germany always says "nein". After Germany understands the importance to Germany and Europe, Germany says "Ja." And once Germany says 'Ja', the word remains, something quite rare in Europe, ”he said.
In the coming weeks, the German Government will start discussing the 2020 Budget, which will make it possible to see whether Angela Merkel and Olaf Scholz will keep their balance in the balance or give in to increasing international pressure.