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Wednesday September 11 2024

German economic growth slowed to minimum

16 August 2024 21:24 (UTC+04:00)
German economic growth slowed to minimum

By Alimat Aliyeva

German economic growth has slowed to a historic low, Azernews reports.

Since 2019, the German economy has been growing as slowly as ever in the entire history of the country, that is, since 1949.

The former head of the Expert Council of Economics under the government of Germany, Bert Ruhrup, considers the main problem to be the policy of the "debt brake", which prohibits taking loans to replenish the budget.

"The first thing that is needed is the reform of the debt brake in order to quickly upgrade and modernize the infrastructure, which is severely dilapidated. It would also be wise to be more open to technology when it comes to the right energy transition," Rurup said.

He considers it necessary to change the system of providing civil benefits to every unemployed person. Now it is 563 euros per month. For some, it is more profitable to receive benefits and work in a shadow job than to switch to a permanent job. "The civil benefit is not an unconditional basic income, but a social benefit, which, according to the plan, should be aimed at returning to regular employment," Rirup said.

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