Berlin (Reuters) -. Germany hopes as lower oil prices on an economic boost
According
The “mirror” the federal government expects for the coming year with 0.2 to 0.3 percentage points additional growth. Even Bundesbank President Jens Weidmann expressed despite the current downturn economic development confident and warned of further protecting aid from the European Central Bank.
“As things stand, and if the oil price remains low, inflation is still lower than expected, the growth but better,” Weidmann said the “Frankfurter Allgemeine Zeitung”. In ECB, however, the decline in oil prices stoking fears of a dangerous for the economy falling prices. In the coming weeks Endscheidung additional instruments in the fight against deflation and weak growth to fall. ECB chief Mario Draghi has already made it clear that he wants to go, if necessary, without the consent of Deutsche new steps. This also the massiv e purchase of government bonds could belong.
Weidmann, however, stressed that Europe does not go as bad as some think. The forecast said rather requires a recovery in the euro area. In the view of the Federal Bank chief on the expected growth impulses speak through cheaper oil against intervention by the ECB. “We are given a stimulus package. Why waste money politically one better place?” He pointed out. German Finance Minister Wolfgang Schaeuble warned of side effects of loose monetary policy. Cheap money must not “reduce the enthusiasm for reform in some countries,” he told the “image”. The head of the farming practices, Christoph Schmidt, pleaded in the “Welt am Sonntag” also against government bond purchases by the ECB.
WARNING OF RUSSIAN STATE PLEITE
A “mirror” report, according to the Department of Trade establishes a “prolonged period of low oil prices,” a. Issue in an internal memo also assume that Germany will transfer 2015 around twelve billion euros, or nearly 25 percent less of the oil-producing countries than this year.
The President of the Kiel Institute for the World Economy, Dennis Snower, the direct economic benefit of the cheaper oil for motorists and businesses on the other hand holds for bounded. He cited the “mirror” Rather risks to the global economy. Even a sovereign default of Russia with hazardous effects on the financial sector would be considered.
The Federal Bank had lowered its forecast for growth in Germany 2015 to a per cent from two per cent. Ukraine, among other crisis and the weakening economy in other euro-countries dampen the mood in the economy. Only seven of 48 industry associations estimate their current situation better than a year ago, according to a survey by the Institute of German Economy in Cologne showed.
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