Published On: Fri, Sep 27th, 2019

France demands Germany up its game – ‘Don’t wait until economic situation worsens!’ | World | News

French finance minister Bruno Le Maire has called on Germany to invest more into the eurozone and in an extraordinary rant, said Berlin were now solely responsible for the economic downfall of the monetary union. He said: “Germany has to invest and do it now, the sooner the better.” Mr Le Maire then warned: “We must not wait until the economic situation worsens to make the necessary decisions.”

The French finance minister then accused Germany of squandering cash adding they had the money to do more but had not.

He added, referring to the high national debt of his country, said the Eurozone debt must be “stabilised” and “lowered” immediately.

The remarks come after France has made several appeals to Germany over the past few years to make more public investments in order to revive the European economy.

This has been met by German politicians repeatedly asking France to get its budget deficit under control.


France has condemned Germany for a total lack of investment (Image: GETTY)


French finance minister Bruno Le Maire has called on Germany to invest more (Image: GETTY)

Yesterday the French budget for 2020 provides for tax relief of more than €9billion (£8billion) for households in yet another sweetener to quell the Yellow Vest protesters that have crippled Paris and brought it to its knees.

Just yesterday things got worse for Germany after Berlin’s major bank has warned that the European central bank does not have the tools left to “cushion” a “real economic crisis”.

Deutsche Bank CEO Christian Sewing said central banks like the European Central Bank and US Federal Reserve “have used their tools to a large extent already” to avoid global economic risks.

He said they have “no conventional measures left to effectively cushion” the hit of a “real economic crisis”.

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He said Berlin were now solely responsible for the economic downfall (Image: GETTY)

Mr Sewing said the world is facing an “extraordinary macroeconomic situation that is very hard and difficult to predict, and potentially making this whole thing even more volatile”.

He added: “I’m particularly worried about a series of financial and geopolitical risks, ranging from the situation in Hong Kong to tension in the Middle East.”

His warning comes after EU member states were warned the eurozone is headed for a “fresh crisis”, bigger than the 2011-2012 disaster.

Economist Liam Halligan said Europe’s largest economy Germany was the only country to save the monetary union from collapse.


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Yesterday the French budget for 2020 provides for tax relief of more than €9billion (Image: GETTY)

But Germany is on the brink of a recession and its economy was recently brought to its knees, shrinking by 0.1 percent in the second quarter.

But Mr Halligan urged German Chancellor Angela Merkel to make significant changes to fiscal policy to stimulate its own economy and the broader region.

He said this will “spark growth elsewhere” and help prevent the “looming” eurozone crisis.

Germany’s economy contracted 0.1 percent between April and June and Germany’s central bank, the Bundesbank is expecting a similar drop in the three months to September.


Germany is on the brink of a recession (Image: EXPRESS.CO.UK)

It said: “The overall economic performance could decline slightly once again. Central to this is the ongoing downturn in the industry.

“Future developments will hinge on how long the present economic dichotomy lasts and which direction it takes one it dissolves.

“As things currently stand, it is unclear whether exports and, by extension, the industry will regain its footing before the domestic economy becomes more severely affected.”

The Bundesbank blamed Brexit and the escalating trade war between the US and China for a drop in orders for cars and industrial equipment that has helped Germany’s economy previously flourish and maintain its place as the European powerhouse.

But the downturn in the second quarter of the year is likely to continue in the third quarter leaving the economy on the brink of a technical recession, two consecutive quarters of negative Gross Domestic Product growth.

Exports “were down substantially” as Brexit preparation plans ahead of the UK’s initial March exit date meant companies stocked up their inventories in the first quarter.

Analysts at Deutsche Bank have even downgraded figures could face further downward revisions.

Additional reporting by Monika Pallenberg.

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