Germany’s Scholz: Germany has fiscal muscle to counter next crisis - Reuters

Reuters reports the recent optimistic comments from Germany’s Finance Minister Olaf Scholz delivered at a government “open day” news conference on Sunday, in the face of increasing recession risks.

Key Headlines:

The debate about debt-financed spending but said a state should live within its means in economic good times, not least because this meant it would be better placed to act when things go wrong.

So if we have a debt level in Germany in relation to economic output that is below 60 percent, then this is the strength we have to counter a crisis with full force.

The global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros.

And we have to be able to muster that (sum of money). And we can muster that. That’s the good news.

The biggest problem is uncertainty, including that caused by the Chinese-U.S. trade war.

Meanwhile, the EUR/USD pair is likely to remain under pressure amid increased expectations of an ECB stimulus to keep the economy on track amid lingering US-China trade fears and Brexit risks.

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