• Germany's news in English
 

Merkel warns of tougher times ahead

Published: 31 Dec 2012 09:15 GMT+01:00

In her annual New Year address published on Monday, Merkel said: "In fact, the economic environment next year will not be easier, but more difficult," adding: "The crisis is a long way from being beaten."

Although top exporter Germany has managed to hold up to the crisis fairly well, growth has slowed here since the beginning of the year.

After expanding by 0.5 percent in the first quarter of 2012, gross domestic product (GDP) grew by just 0.3 percent in the second quarter and a mere 0.2 percent in the third quarter.

In October, the government slashed its forecast for economic output next year to 1.0 percent, compared to 1.6 percent previously seen.

The country's gloomy central bank has said Germany may even flirt briefly with recession early next year.

The Bundesbank also forecast that Germany would only grow by a meagre 0.4 percent in 2013.

Nevertheless, "it has been possible this year to have the lowest unemployment and the highest level of employment since reunification" in 1990, Merkel recalled.

And a slowdown next year "should not leave us discouraged but should spur us on", said the chancellor, according to the text of her speech released in advance by her office.

Turning to the eurozone's efforts to tackle its three-year debt crisis, she judged that "the reforms that we have decided are beginning to work. However, we still need more patience. The crisis is a long way from being overcome."

Merkel also called for better supervision of the financial markets, stressing: "The world has still not sufficiently learned the lessons of the devastating financial crisis of 2008."

AFP/The Local/mw

The Local (news@thelocal.de)

Your comments about this article

10:44 December 31, 2012 by The-ex-pat
Yes Angie, tough times ahead when you are on €16000 a month.........
11:49 December 31, 2012 by blackboot11
Preaching Austerity and tough times ahead then giving themselves a pay raise:

"Merkel, her ministers and their parliamentary secretaries of state will see their wages rise in three stages between now and August 2013, until they all get 5.7 percent more.

The chancellor's total pay is set to rise from €16,152 per month before tax to around €17,016. This does not include her €1,022 ¦quot;special duties¦quot; allowance.

Ministers' pay will rise by €750 euros to around €13,795 a month. This will amount to a bump of around €9,000 over a year. "
11:52 December 31, 2012 by Berlin fuer alles
Well deserved pay raise considering how well she has done for her Bankster buddies. After all it only takes a little bit extra austerity to pay for these pay raises and with so much austerity going around these days it is easy slip in a bit extra.
13:26 December 31, 2012 by Englishted
"Merkel also called for better supervision" does she mean her minster who is singing from a different song sheet?

"The situation is better than expected because of stronger trade with the US and Asia, among other things. The German economy will therefore grow at a decent rate in 2013," Schäuble said.

But remember brainwashed supporters austerity begins at home ,

your home.
19:04 December 31, 2012 by marimay
As he/she sits there in his/her ugly suit made of pure silver. How dare he/she!
22:49 December 31, 2012 by www.emungus.net
THE TIME OF MIRTH HAS SHORT TIME

To many Germs this topic must have a chilling effect. A few days ago, the tone was cheerful for finance minister Wolfgang Schäuble(optimistic) and chancellor Angela Merkel (canny). Mr. Schäuble has been quoted by The Local as saying that ''the worst is behind us''. Certainly German citizens were felt relieved as a period of stable economy was in sight. Now none of that. Does time of mirth has a so short lifetime?
04:22 January 1, 2013 by DOZ
1010011010
21:22 January 4, 2013 by blacksunne88
Merkel is a traitor to Gemany and everyone who has examined her record knows it.She prospered in the Soviet Zone of Occupation based on her talents as a traitor. Today she works for the international bankers and their New World Order. Her only interest in the German people is her concern that the guilt complex pounded into peoples' heads since WW2 be updated with new lies, preferably every week. What has she done for Germany? She should be arrested and expelled to one of the countries she loves--Poland, the Czech Republic, Israel, or the USA. If you think that is too harsh then retain her in the German diplomatic service, but please, let's try to reduce the harm she can do by sending her to Outer Mongolia, the Congo, or some othe paradise.
Today's headlines
Train strikes
Train drivers confirm new strikes
Trains cancelled. Photo: DPA

Train drivers confirm new strikes

German Train Drivers' Union (GDL) boss Claus Weselsky said on Wednesday that his members would walk off the job after DB refused to accept an ultimatum he issued earlier in the week, although he did not say when or for how long they would strike. READ  

Judge rules smoking senior can't be evicted
Friedhelm Adolfs. Photo: DPA

Judge rules smoking senior can't be evicted

The Supreme Court (BGH) has decided that a landlord had no right to throw out the man being called "Germany's second-most famous smoker after Helmut Schmidt" without due notice. READ  

Fearlessly Jewish on the streets of Munich

Fearlessly Jewish on the streets of Munich

While the world watched with shock as a Jewish man encountered abuse on the streets of Paris for wearing a kippah, The Local talks to a Munich man who has been doing the same for two years - with surprising results. READ  

'Bomb' sent from Germany to Sweden

'Bomb' sent from Germany to Sweden

Swedish police are checking a suspicious package apparently sent from Germany to a local newspaper in Sweden that previously published controversial Muhammad cartoons. READ  

Ukraine crisis
Government condemns Ukraine rebel advance
Ukrainian government troops ride a tank on the way out of Debaltseve on Wednesday. Photo: DPA

Government condemns Ukraine rebel advance

The German government said on Wednesday that pro-Russian rebels' advance into the eastern Ukrainian city of Debaltseve was a serious breach of ceasefire terms agreed last week in Minsk. READ  

The Local List
Germany and the seven deadly sins

Germany and the seven deadly sins

Beer, chocolate, car keys! Lock them all away, say Germans, who more than half say they partake in Lent, the seven-week fasting period before Easter, but more for health rather than religious reasons. READ  

Schäuble rejects Greek bailout without reforms
Wolfgang Schäuble at negotiations in Brussels on Tuesday. Photo: DPA

Schäuble rejects Greek bailout without reforms

UPDATE: A spokesman for Finance Minister Wolfgang Schäuble said on Wednesday that any extension of international loans to Greece beyond the end of the month was "inextricably" linked to reforms agreed to by Athens under its current bailout. READ  

Politician wants last call on late-night beers
Day drinking it is! Photo: DPA

Politician wants last call on late-night beers

A municipal politician is saying that Berlin needs to reconsider its alcohol sales rules and is proposing a ban on booze sales between 10pm and 5am. READ  

Police find 104 rabbits in Stuttgart flat
Imagine ten times this many rabbits. Photo: Shutterstock

Police find 104 rabbits in Stuttgart flat

Police in Stuttgart were in for a hopping surprise when they searched a flat on Tuesday and found it full to bursting with furry mammals. READ  

German reporter 'spy' arrested in Mozambique
A South African National Defense Force sodlier takes part in a training exercise as part of Operation Rhino in the Kruger National Park, South Africa's flagship national wildlife park on 19 July 2011

German reporter 'spy' arrested in Mozambique

Two journalists, a German and a Swede, were held briefly by police on Monday while investigating rhino poaching in southern Mozambique. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: Police
Rhineland
Student driver crashes tank into family garden.
Photo: DPA
Politics
There was a notable absence at the Anti-Semitism Commission
Sponsored Article
Tourist or lifer: what sort of expat are you?
National
How Dresden bombing still divides Germany, 70 years on
Sponsored Article
Are you an American expat? How to face FATCA
Photo: DPA
Gallery
Take a cute break with this gallery of baby animals
International
What's keeping UK expats from voting?
Photo: DPA
National
Terror alert at a new high. Should you be worried?
Gallery
The best regional foods TTIP opponents want to protect
Photo: DPA
Features
All you ever needed to know about Pegida
Photo: Shutterstock
Culture
This cosplayer did not think his plan through
National
Europe in statistics - from Spain to Sweden
Gallery
Top 12 German idioms
Culture
10 top tips for partying in Germany
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,526
jobs available
Toytown Germany
Germany's English-speaking crowd