A German public investment program, often called their vows by neighboring Germany to revive the economy eurozone would little economic repercussions abroad, said on Monday the Bundesbank in its monthly report.
“as a tool to strongly stimulate the economy international, it seems that a public spending program in Germany is inappropriate, “ruled the German central bank, after a thorough analysis.
a revival of investment would , boosting German domestic demand and through trade, “visible positive effects, especially in some savings for small and medium size in the direct vicinity of Germany and Central Europe.” But the impact would be “weak” on the growth of the major economies of the eurozone, namely France, Italy and Spain (+ 0.1% GDP growth) or Portugal and Greece (+ 0.2%), says the Bundesbank.
Germany can not solve imbalances in Europe
the simulations are hypothesized an increase in public investment amounting to 1% of GDP over two years, which would represent an increase of almost 50%, said the “Buba”.
it concludes that “German economic policy can not solve the external economic imbalances in other countries or unload the adjustment expenses”.
the institution also emphasizes that ‘increased indebtedness of Germany led by such stimulus, estimated at 1.7 percentage points of GDP, would be offset by the tax, which would slow in turn the effects on short-term demand.
the German stimulus would boost not also the country’s GDP by 0.5% on average in the first two years after its launch, the Bundesbank added.
” the domestic economy does not, in its current state, short-term stimulus, “sums up the orthodox central bank, which recalls that the financing of public projects should not” undermine respect for German and European budgetary rules. “
the Bundesbank has always been reluctant face of repeated calls from the International monetary Fund (IMF) and some European countries, including France , an increase of public investment in Germany. They reproach him with his weak domestic demand and low investment, blithely export its “Made in Germany” products in its neighbors without contributing enough to growth in Europe
. <- nbrPV <- / tpl_article / pub_native -> : 0 – -> <- status: non-registered -> <- tpl_article / bloc_servitiel_nl ->
<- / tpl_article / bloc_servitiel -! >
No comments:
Post a Comment