Wolfgang Schaeuble, the finance minister of Germany, said in an interview conducted on Sunday by a newspaper that he wishes to increase the investment spending, as well as improve the biggest economy of Europe’s competitiveness, without risking the achievement of next year’s balanced budget.
A force of unwanted economic data plus slowdown expectations of German growth contributed to the jitters on global markets. Schaeuble is also under pressure of spending on railways, energy grids, roads and broadband networks to support growth.
Schaeuble, as he was interviewed by Welt am Sonntag, said that the government’s criticism regarding the lack of competitiveness or insufficient investment was given justification. However, Berlin was trying to make them work at both the European and national levels.
In addition, Schaeuble also mentioned that such steps will not be accomplished overnight, so they should work on particular matters now, such as the digital union of Europe, their infrastructure’s sustainable maintenance or their energy union.
Affected by the crises overseas’ effect, a floppy domestic demand and a euro zone that is weak, Germany has hit its own forecast for growth to only 1.2 percent this year from the 1.8 percent it used to have and 2015’s 1.3 from 2.0 percent.
However, Schaeuble, who is popular for his budget discipline’s tough principles, insisted that Germany will not grow just on credit. He also said that he has expectations of reaching balanced budgets next year, the first since the year 1969.
He also mentioned that they should keep their promises.
The budget for defense can be increase in the medium term because of demands coming from geopolitical risks and international partners, according to him.