MNI BRIEF: Germany 'Not As Bad As Reputation Suggests' - Nagel
MNI (LONDON) - Germany is grappling with a number of well-known structural challenges that have seen its unquestioned status as Europe’s economic powerhouse, but the country is not in decline, Bundesbank president Joachim Nagel said in a speech Tuesday.
“There is no doubt that we are undergoing a difficult process of change,” he said. “But we can shape it. And if we shape it correctly, then I can say quite clearly: No, in my view Germany is not in decline! (See MNI INTERVIEW: VW Crisis Should Be Wake-Up Call - IWK's Demary)
Economic policy can mitigate some obstacles to key investments, but a “transparent, targeted and consistent overall framework is essential,” while government subsidies should be applied with “moderation and purpose.”
“The cornerstones of the German industrial apparatus are still in place, and Germany as a business location is better than its current reputation,” Nagel said.