Greece’s success ‘an example’ for Germany

“Greece’s economical show [since the indebtedness crisis] has been impressive,” says Joachim Nagel, president of the Deutsche Bundesbank, successful an interrogation with Kathimerini during his visit to Athens. He adds that Greece serves arsenic an illustration and offers encouragement to different countries facing difficulties, including Germany.

“Germany needs structural reforms,” helium emphasizes, acknowledging that such reforms are challenging for politicians and seldom popular.

Nagel describes the monetary argumentation presently pursued by the European Central Bank arsenic “the close way forward” and supports the program to unify savings and investments to strengthen Europe’s presumption successful the eyes of investors.

He speaks warmly astir the value of tackling challenges together, noting that “trust is our astir valuable currency successful Europe.”

Would you accidental that the simplification way of euro involvement rates has travel to a halt? Under what circumstances should the ECB further loosen its monetary policy?

First, I would similar to say, Europe and its citizens person crushed to take pridefulness successful their achievements. We are presently successful a bully situation: Inflation successful the euro country is adjacent to our medium-term target of 2% and expected to stay there implicit the adjacent years. This is simply a large accomplishment, fixed that three years agone our ostentation complaint was supra 10%. To beryllium honest, I americium convinced that it ne'er helps to speculate astir aboriginal argumentation rates. However, based connected the accusation presently available to us, I tin affirm that our monetary argumentation stance is the close way forward.

The precocious outgo of surviving is astir apt the biggest occupation facing Greek households, with ostentation having been persistently higher successful Greece than successful the eurozone until past month, when this was reversed. Why was the scale moving faster present and what should we expect successful the future?

Let maine archetypal accidental that each of Europe is successful awe astir the economical betterment this state and its radical person mastered. Currently, respective countries, including my own, are suffering from higher ostentation rates successful the services sector. Unfortunately, Greece was nary exception. However, successful September, preliminary [Harmonized Index of Consumer Prices, HICP] information released by Eurostat revealed a crisp diminution successful Greece’s ostentation complaint to 1.8%. And what is adjacent much encouraging is that the alteration was broad-based. This is bully quality for Greek consumers. However, there is nary country for complacency. Across Europe the downward displacement of ostentation was driven successful ample portion by a diminution successful vigor prices. Consequently, there is simply a captious request to summation practice among member-states to propulsion for much resilience successful the vigor markets. I strongly support the European endeavor of a associated vigor market. This would further strengthen the ties betwixt our countries, with Greece starring successful the renewables assemblage and the German manufacture keen connected reducing vigor costs.

Do you expect the German system to retrieve successful the foreseeable future? Will the existent fiscal stimulus beryllium effective, and what different reforms are needed for a faster recovery?

I person nary uncertainty that nationalist investments successful infrastructure and defence will statesman to interaction GDP from adjacent year onward – it takes some clip for the plans to beryllium implemented. The important question, however, is whether these investments will spur maturation successful the agelong run. For this to happen, Germany besides needs structural reforms. These reforms should summation the supply of labor, facilitate the indispensable transition toward net-zero c emissions, and bolster a much dynamic firm sector. Less reddish tape and faster, thin administrative processes are important for the governmental docket successful Germany. Such reforms are politically challenging and seldom popular. But Germany is inspired to pb its transformation to success and is continually seeking strong partners similar Greece to support this endeavor.

What would beryllium the consequences of a prolonged stagnation successful the German system for the remainder of Europe and for Greece successful particular?

Do you truly want maine to envision that? My vision is simply a antithetic one. All forecasters foresee a solid maturation complaint successful Germany from adjacent year on. However, we bash look important challenges ahead. The Bundesbank estimates imaginable maturation astatine 0.4% for the coming years – 1 percent constituent little than implicit the past decennary and 1 percent constituent little than successful the EU excluding Germany. That worries me. The German authorities is taking measures, that will astir surely boost growth. But fto maine besides accidental connected a broader note: We are all, successful Germany, but besides crossed European borders, working intensively together to support and heighten European competitiveness and thereby shield our shared values, which person their roots not acold from present successful the Agora of Athens.

‘[The Eurobarometer survey] shows that trust successful the EU and the European Commission is astatine its highest level successful 18 years’

More than a year aft the Draghi report, bash you judge Europe has taken important steps to amended its competitiveness? Is this a situation that Europe tin realistically win?

Let maine code your past question first: What does it adjacent mean to win? Our extremity is to heighten and safeguard the surviving standards and welfare of European markets and citizens. Can we execute this amidst the presently volatile geopolitical situation that we unrecorded in? Yes, we can. We each spot the request to act. We are each willing to enactment together and trim fragmentation to boost competitiveness. Europe requires its ain future-minded strategy. We spot immense technological advancement successful galore fields, from artificial quality to cleanable technologies. We request to assemblage successful superior to standard up the innovative businesses and superb ideas our agleam minds are processing successful Europe. It is our work successful Europe to take an progressive relation successful shaping the burgeoning sectors of the future. To sum up: We are working connected galore fronts to tackle the issues Mario Draghi rightly highlighted.

How terrible will the interaction of US tariffs beryllium connected the European economy, and connected Germany successful particular?

What we person seen so acold is that European companies person skillfully managed the situation, contempt its challenges. Clearly, going forward, we request strong alliances and peculiarly person to absorption connected our resilience, for lawsuit successful the tract of defense. While we should work eagerly to amended Europe’s capabilities and summation its autonomy, our narration with planetary partners who stock our antiauthoritarian values stay of utmost importance.

The politician of the Bank of Greece, Yannis Stournaras, has said that, fixed increasing planetary uncertainty, Europe could go a harmless haven for investors. Do you agree? Under what circumstances could Europe execute this?

Yes, I hold with my esteemed colleague. Like Greece, respective countries person made important strides implicit the past decade. The euro country arsenic a whole has besides go safer and much reliable. When the banking systems successful the United States and successful Switzerland saw large disruptions two years ago, the European banking assemblage proved stable. But Europe tin bash much to strengthen its stance and prime successful the eyes of investors. And it has a task for this: the savings and investments union.

Will the EU proceed to relation arsenic a union of solidarity, supporting its weakest regions and countries, oregon bash you expect it to take steps backward successful the future?

Well, I suppose the astir pragmatic and logical reply to this question is that the bulk of Europeans admit that we are overmuch amended disconnected successful a union. We are presently witnessing war, trade inhibitions, and governmental instability crossed the world. As quality beings, we people strive for information successful an insecure environment. This is besides confirmed successful the Eurobarometer survey among the citizens of the European Union. It shows that trust successful the EU and the European Commission is astatine its highest level successful 18 years. If something bully tin beryllium drawn from the expanding geopolitical tensions and headwinds, it is that Europe has travel person together and the willingness to code the cardinal challenges is growing.

On a much idiosyncratic note, I judge it mightiness beryllium much than that: As Europeans, we person endured galore challenges together implicit the past decades. And we person learned to trust each other. Trust is our astir valuable currency successful Europe.

How would you measure Greece’s economical advancement since the situation period?

I said it successful my speech present successful Athens Tuesday: Greece’s economical show has been impressive. GDP is increasing solidly arsenic ELSTAT information show, the labour marketplace has shown singular improvement, and the nationalist indebtedness ratio is declining. Through the testimonials of my friends successful this state I americium alert that caller years person been a tough clip for galore successful Greece. It is singular what has been achieved. And arsenic I said, this success whitethorn service arsenic an illustration and springiness courage, besides for my country.

What bash you spot arsenic the main challenges presently facing the Greek economy? Do you person immoderate concerns astir its future?

I conscionable want to wish the Greek system each the champion to support its momentum, to proceed to grow, and to tackle the challenges of our time. And to ever beryllium assured that, arsenic Europeans, we stand united successful facing these challenges.