Out of Balance? Criticism of Germany Grows as Economy Stalls

The latest indicators (September / October 2014) suggest Germany's once buzzing economy is beginning to stall. The development has created a serious dilemma for Finance Minister Wolfgang Schäuble. Critics say spurring growth is more important than his goal of a balanced budget.

Voices calling for the German government to spend more and end its obsession with balancing its budget were growing louder, said The Local.de, with growth forecasts cut by a third on the 14 October 2014. Is the country saving itself into a recession?

• Primary Source

Deutsche Welle, 09.10.14: Think tanks predict lower growth in Germany http://dw.de/p/1DSRG

Germany: Federal Ministry for Economic Affairs and Energy: Topics: The Economy: Economic Situation and Statistics http://www.bmwi.de/EN/Topics/Economy/economic-situation-and-statistics.html

Euronews, 14.10.14: German economic sentiment weakens http://www.euronews.com/2014/10/14/german-economic-sentiment-weakens/

The Local.de, 14.10.14: Should Germany start spending? http://www.thelocal.de/20141014/time-for-german-economy-to-change-course

Deustche Bank Research: Current Issues, 30.09.14: Focus Germany: Heightened risks http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000343518.pdf

EurActiv, 15.10.14: Germany lowers growth forecast amid eurozone 'doldrums' http://www.euractiv.com/sections/euro-finance/germany-lowers-growth-forecast-amid-eurozone-doldrums-309182

BBC News, 14.10.14: Germany cuts 2014 growth forecast from 1.8% to 1.2% http://www.bbc.co.uk/news/business-29618609

Deutsche Welle, 14.10.14: Berlin slashes growth forecasts http://dw.de/p/1DVTJ

EUObserver, 15.10.14: Policy change in Germany only when economy 'hits wall' http://euobserver.com/economic/126084

The Daily Telegraph, 08.10.14: German model is ruinous for Germany, and deadly for Europe http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/11150306/German-model-is-ruinous-for-Germany-and-deadly-for-Europe.html

European Commission: DG Economic and Financial Affairs: EU economic governance: Stability and Growth Pact: Draft budgetary plans of euro area Member States: Germany 2015 http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/dbp/2014/2014-10-10_de_dbp_en.pdf

BBC News, 19.10.14: Germany must invest more but not raise debt - Schaeuble http://www.bbc.co.uk/news/business-29681331

Deutsche Welle, 19.10.14: France calls on Germany to invest 50 billion euros in eurozone http://dw.de/p/1DYUq

Blog: Open Europe, 23.10.14: Michael Wohlgemuth: Why the EU cannot bank on Germany’s economy http://openeuropeblog.blogspot.co.uk/2014/10/michael-wohlgemuth-why-eu-cannot-bank.html

Social Europe Journal, 27.10.14: Why The Eurozone Suffers From A Germany Problem http://www.social-europe.eu/2014/10/eurozone-suffers-germany-problem/

Blog: LSE EuroppBlog, 03.11.14: German austerity is not only damaging the Eurozone, but is also starving the country of its own much needed investment http://bit.ly/1zqMqcb

ESO: Background information: German economic slowdown poses risk for EU recovery http://www.europeansources.info/record/german-economic-slowdown-poses-risk-for-eu-recovery/

ESO: Background information: Germany's Ailing Infrastructure: A Nation Slowly Crumbles http://www.europeansources.info/record/germanys-ailing-infrastructure-a-nation-slowly-crumbles/

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