Achtung! Germany’s economic woes deepen, says German Finance Secretary

The state of the German economy matters most to the EU, but also to British exporters

Montage © Facts4EU.Org 2024

Facts4EU.Org reveals the latest bad economic news from the EU’s No.1 economy

When Germany sneezes, the rest of the EU catches a cold. On Thursday (16 May 2024) the German Finance Minister, Christian Lindner, warned that cutbacks will be necessary as a result of plummeting tax revenues. This will affect federal, state, and local governments.

It will also have a further depressing effect on Germany’s already weakened economy.

This matters to Brexit Britain too

Despite what Rejoiners (and significant parts of the British media) say, the rest of the non-EU world represents a much bigger market for the UK than the EU27, and it is growing at a faster rate. The UK’s No.1 market by far is the United States, for example.

That said, it is not in Brexit Britain’s interests to see the EU’s No.1 economy in trouble.

Brexit Facts4EU.Org Summary

Real GDP growth Q1 2024 – International comparison

[Sources: ONS and OECD, 10 May 2024.]

Tax revenues now predicted to fall by €22 billion next year, in stark warning of cutbacks

The German finance ministry has been forced to warn of a scaling back of spending as a result of a €22 billion hole in tax revenues next year. This comes at a time when public authorities and unions are crying out for more money, partly due to immigration and partly due to supply chain shortages and the energy crisis.

It also comes at a time when senior figures in the UK are warning of the need to cut back on public spending in our own country.

What the German Finance Minister said :

"[This] destroys the illusion of all those who thought that money would just fall from the sky."
"What I repeat almost like a mantra in view of the exorbitant political wishes is now available in black and white: There is no new financial room for manoeuvre in the foreseeable future."
"We have to concentrate on the essentials… This requires discipline and willpower."
- German Finance Minister, Christian Lindner, 16 May 2024

Attribution: Sandro Halank, Wikimedia Commons, CC BY-SA 4.0

Will Germany’s coalition government survive?

Putting aside the financial warnings from Germany’s finance minister, there are also political considerations. Herr Lindner comes from the Free Democrats, one of the three parties which make up Chancellor Schotz’s ruling coalition.

The Free Democrats are very broadly akin to what the UK’s Conservative and Unionist Party used to be. They tend towards small state, low tax policies. They are a minority partner in the government in Germany. On the right, the CDU/CSU are much more popular.

Observations

Given that the Free Democrats are in coalition with Olaf Scholz’s socialist party and the Green Party, it remains to be seen whether this shaky coalition will survive the kind of cutbacks Herr Lindner is suggesting will be necessary.

We must get reports like this out there

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[ Sources: German Finance Ministry | German media ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Sun 19 May 2024

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Reader Comments 5

1. Northern Muppet , Monday, May 20, 2024, 06:46:

Just imagine if you were an economy heavily biased towards heavy industrial manufacturing.
.
And then your political leaders decided to fall in with the Net Zero and Eco nutters and you gave yourself the most expensive energy you possibly could. You closed down your nuclear power sites, became reliant on gas from a basket case country with an autocratic leader.
.
Those same political leaders decided to open your borders to unlimited migrants (from a culture that hates your own culture) and lots and lots came.
.
(This could go on for a long while)
.
You'd vote for politicians like that, wouldn't you?
.
Wouldn't you??

2. Ashley Great Britain , Monday, May 20, 2024, 16:29:

1 Northern muppet.
-
And then they have to pay the shortfall from the UK leaving.
All in all they will experience what we have in the last 15-20 years, incompetence, failing health and police, more immigration and thousands of Miles of potholes.

3. Sparky , Monday, May 20, 2024, 21:12:

2 AGB. The 15-20 years incompetence has nothing to do with EU, those are all home grown UK issues.
.
Great piece in HUFFPOST. “Tory MP Schooled Over Real Economic Impact Of Brexit Live On Air.”

4. Paulj , Monday, May 20, 2024, 22:06:

Sparky
Great piece in huffpost?
Total garbage from a writer at the Guardian stating false numbers you mean.
Remoaners are desperate.

5. Ashley Great Britain , Tuesday, May 21, 2024, 06:04:

3 sparky.
-
I don't believe for one minute that the Eu's meddling over the years has not contributed greatly to our problems. If we never joined the EU, And we weren't corrupted by them, I'm sure we would be streaks ahead of the main EU countries.
Just paying them for years to be controlled and limited is a casing point.
Our vote to leave couldn't have come soon enough when our soldiers had to start wearing EU insignia.

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