Olaf Scholz. photo: Wikipedia
German Chancellor Olaf Scholz said that Germany will not increase its debts indefinitely, as some experts abroad are calling for. He noted that the problems cannot be solved with the help of loans. Olaf Scholz said this in an interview with Die Welt in response to an article in the British newspaper The Economist, which raised the question of whether Germany is the new “sick man of Europe”. The chancellor said that the policy of the authorities cannot be the reason for the slowdown of the national economy.
The analyst also noted that The Economist criticizes Berlin for its reluctance to increase the public debt by 100-200 billion euros a year. year. However, as the chancellor emphasized, the endless increase in debt does not solve problems, but only creates new ones.
The chancellor attributed Germany's poor economic results to the weakening of export markets, especially China, as well as rising energy prices. High inflation and the impact of supply chain disruptions during the COVID-19 pandemic also played a role. However
Olaf Scholz emphasized that Germany is actively developing semiconductor production, building battery factories and investing in electric vehicles.
Authors of the article. to which Scholz responded, he pointed out that Germany has long relied on leadership in old industries without investing in new industries. For example, the share of investment in information technology in Germany is half that of France and the United Kingdom. The article also argued that Berlin's main mistake was its over-reliance on balanced budget policies, which hampered infrastructure development and increased investment.