German govt warns of economic risks

Updated: 2012-01-05 14:45


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BERLIN - Germany's Economics Minister Philipp Roesler assumed on Wednesday that the federal government's warning to the risks of the gloomy global and eurozone's economic outlook could eventually bite the German economy despite strong performance.

"It is now important to strengthen growth in Germany," Roesler said in an interview with the business daily Handelsblatt, pinpointing to the urgency to secure the supply of skilled labor counts in the business circle, a safe and affordable supply of energy and the further reduction of bureaucratic burdens.

Roesler warned that growing risks latent with the global economy and the eurozone debt crisis could eventually pose threats to sustaining the further economic growth of the European economic powerhouse.

The German government has already cautioned in the autumn projection of the possible risks of further economic slowdown in Europe and the world's economy. Roesler said the government would likely "confirm" the risks identified towards the end of 2011.

"I expect that this overall assessment is affirmed in the upcoming Annual Economic Report," Roesler said, referring to the the German federal government's annual economic report due to be published in mid-January.

According to Roesler, a series of reforming measures of the past, including raising the age of pension-reception to 67-year-old, and many other key policies instruments apropos of workforce market, have been proved as successful and led to a great many flexibilities towards activating the economic vitality.

German economy enjoyed rosy performance amidst the ongoing eurozone debt crisis, as it is expected to grow by 0.6 percent in 2012 and then by 2.2 percent in 2013, according to the New Year forecasts by the German Institute for Economic Research (DIW).

However, as the institute's head Ferdinand Fichtner emphasized, "this will only happen if politicians come up with a convincing solution to the eurozone crisis in the next few months."