Published On: Fri, Oct 18th, 2019

Brexit News: Germany blames dramatic economic downturn on Brexit concern | World | News

Angela Merkel is under mounting pressure after the so-called ‘engine of Europe’ admitted that its economy is “in trouble”. The announcement came just hours before a Brexit deal was announced at the EU summit in Brussels. Germany slashed its economic growth forecast for 2020 – a move that Berlin has blamed on geopolitical trade conflicts and Britain’s decision to leave the EU.

Europe’s largest economy is expected to expand by just 1.0 percent in 2020, according to the the economy ministry.

This is down from a 1.5 percent forecast made just a few months ago.

Only Italy is expected to grow slower than Germany next year – sparking alarm among EU countries and putting pressure on Mrs Merkel.

Daily newspaper Sueddeutsche Zeitung remarked that Germany was becoming the “problem child” of Europe.

JUST IN: Merkel and Juncker warn Brexit Britain is now their rival

Economy Minister Peter Altmaier tried to quell nerves around the German economy, insisting that there is “no threat of an economic crisis”.

Mr Altmaier blamed Brexit for the plunging economic outlook, urging an “orderly exit” to support the country’s economic forecasts.

Germany is already believed to be in a technical recession, since it has suffered two successive quarters of negative growth.

This recession, the first in nine years, marks the end of a ‘golden decade’ for Germany’s economy. 

Earlier in the week, Angela Merkel told the German Bundestag that the country must retain its rebate as part of the next EU budget.

She told German politicians that the country faced an “excessive burden” as a result of Britain’s exit from the bloc.

The chancellor said: “Due to this increase, and Britain’s imminent exit from the EU, Germany will be excessively burdened when it comes to the Multiannual Financial Framework (MFF).

“For that reason we have to talk about fair burden-sharing on the financial side and a rebate for Germany.”

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