The fear of the crash: How will the federal government help the economy – Tagesspiegel

The fear of the crash: How will the federal government help the economy – Tagesspiegel

04/10/2014 23:26 clock by Heike Jahberg

The Ukraine-conflict, the euro crisis, the fear of Ebola – the optimism that propelled the German economy until recently, nothing is felt. Economic programs keep economists still superfluous.

The fear of the downturn to go in the German economy. The confidence among businesses and consumers decreases, the Ifo business climate index and GfK consumer climate index are plummeting. The autumn revival in the labor market falls from mau, and the Euro-zone is not in momentum matter how deep into the monetary policy tricks ECB chief Mario Draghi.

The Russian crisis, the duration of concern for the ailing euro-neighbors France, wars in Syria and Iraq, the fear of Ebola – all this leaves traces in the country of export master

In the second quarter of this year, the economy has shrunk.. “The risks to the German economy are enormous,” the daily mirror, the President of the German Institute for Economic Research (DIW), Marcel Fratzscher said. “The German economy is not immune to the European crisis. The geopolitical problems in the Ukraine and the Middle East have an impact on investment and growth in Germany. “

However, it does not stand so bad for the economy, as some sunk. “After a very weak second quarter, growth should stabilize in Germany and we achieve a growth rate of about one per cent this year,” says the DIW-chief.

Economic Recovery Plan in the Ministry not an issue

Federal Minister Sigmar Gabriel had originally forecast a growth of 1.8 percent, but is increasingly cautious. At the same time the SPD party leader discovered his heart for the economy. He wants to strengthen the industry and help founders. Above all, he wants to modernize the country. New roads, powerful networks – designed to prevent the descent

From an economic program through State resources as the financial crisis in 2008-09 wants to know nothing but the Ministry.. “There is no reason,” it says on request. The economists also see that. “Even if the economy weakens, the State should not additionally debt,” warns the President of the Ifo Institute, Hans-Werner Sinn. The German debt ratio lies already at 23 percent above the limit of the Maastricht Treaty. “Not every slowdown should lead to an economic recovery plan,” said sense the Tagesspiegel.

infrastructure is of interest to insurers

DIW-chief Fratzscher currently sees no need for an economic stimulus program. Instead, set the Ökomom on the Langer’s expert commission to develop proposals on behalf of Gabriel, how to improve the climate for private investment. The first one addresses the insurance industry. Because safe government bonds yield nothing more, the industry would like to invest in electricity grids or highways.

From a stronger commitment of the insurer would have both sides of something, said Michael Diekmann, CEO of Allianz. The state could his agent for debt use, the insurer would have long-term and profitable investments for the retirement of their customers. “It would be a win-win situation,” Diekmann told the Tagesspiegel.

5.1 billion euros currently plugged in infrastructure projects and renewable energy alliance, as in a Norwegian gas pipeline or a Czech gas network operator. That’s not much considering the total assets of 573 billion euros. Even with the number two in the market, the Ergo, it does not look better. A mere 250 million euros, the subsidiary of Munich Re put in infrastructure investments, such as the network operator Amprion. But Ergo is planning a tenfold increase their commitment. “We want to invest in the next few years, around two billion euros in this area,” announced a spokesperson.