Germany’s economy minister Rainer Bruederle has given an
upbeat assessment of his country’s recovery, including the assertion that
“full employment will soon be possible”.
He said that Germans were “doing well and spending
again”, and that domestic consumption was strong.
Data released this week showed German business confidence
at a 20-year high.
German optimism is in marked contrast with the gloom
engulfing some European economies struggling with high debts.
The euro has fallen by more than three cents against the
dollar this week on fears that the Irish debt crisis may spread to other
European countries with high budget deficits, such as Portugal and Spain.
The Irish Republic is negotiating with the European Union
and the International Monetary Fund over a rescue package expected to be worth
about 85bn euros ($113bn; £72bn).
But despite the fact that many Germans are unhappy they
will be contributing the bulk of the bail-out, Mr Bruederle said confidence had
returned following the global recession.
“Germans are in an expansionary mood. We’re
investing again, we’re consuming again, people are doing well and people are
spending again,” he said.
He added that domestic demand was now contributing more
than half of the country’s economic growth, while “the council of economic
experts say next year 90% of growth will come from the domestic economy”.
This is significant given that Germany is the world’s
second-largest exporter.
Mr Bruederle also said the German job market was in good
health.
“There are fewer than three million unemployed now,
down from five million. Even the number of long-term unemployed is now
decreasing, which has never happened in the past,” he said.
“I’m convinced that full employment will soon be
possible.”
The German economy grew by 0.7% between July and
September compared with the eurozone average of 0.4%.
This followed record growth of 2.3% in the previous three
months.
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