When Robert Habeck looks back on his term as Minister of Economic Affairs, three figures stand out: -0.3 percent in 2023, -0.2 percent for 2024 and a reduced growth forecast for the current year from an original 1.1 percent to a meager 0.3 percent. The Minister of Economic Affairs was suitably upset when he presented the sobering data from the annual economic report on Wednesday.

However, Habeck himself denies any personal responsibility for economic development, as he explained on Thursday in the government questioning in the Bundestag. He speaks of a "structural crisis" and points out that Germany's previous economic model, which was based on cheap energy from Russia and production capacities in China, is no longer viable. In addition, Germany has not provided any fiscal stimulus to promote growth.

By this, Habeck means that Germany has adhered to the debt brake anchored in the constitution and has taken on "only" 50 billion euros of new debt in 2024. He would have liked to have taken out even more loans in order to provide greater financial support to companies. However, he did not mention that some of the projects he supported, such as Intel or Northvolt, have failed.

question of blame for economic weakness

Habeck also does not see the recent downward revision of the growth forecast as his own fault. Rather, he believes it is the current political uncertainty as a result of the internal traffic light dispute, the consequences of which he himself warned about. Habeck strongly rejected the idea that the traffic light coalition's economic policy or his own leadership as economics minister could play a role.

AfD vote as an economic problem

Habeck nevertheless recognized one political mistake: Wednesday's vote. He described the approval of the CDU/CSU, FDP and AfD for a motion on migration policy as a "nail in the coffin for the German economy".

He justified this with the existing shortage of skilled workers and the need to recruit qualified workers from abroad. "We are dependent on immigration. Because of this decision, which I believe is fatal, people who are not called Müller, Meier or Habeck are now considering whether to leave Germany. This vote will have long-term economic damage and represents an economic disaster."

According to Habeck, East German companies in particular will have difficulties in recruiting foreign skilled workers in the future. The increasing support for the AfD and the Union's cooperation with this party are deterring potential workers - a theory that he did not, however, provide any further evidence for.








Source: Editorial staff
Author: Tom Weyermann