• Germany's news in English

Merkel warns of tougher times ahead

The Local · 31 Dec 2012, 09:15

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.

Story continues below…

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

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
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
Second wolf found dead in southern Germany
The dead wolf found in Baden Württemberg. Photo: DPA

Second wolf found dead in southern Germany

12 hours ago

A wolf has been found dead near a motorway in Baden-Württemberg - the second time in recent months one of the rare predators has been found dead in the southern state.

Alternative Advent calendar puts fitness first
The 24-day series kicks off on December 1st. Image: promo

Alternative Advent calendar puts fitness first

13 hours ago

Worried about staying slim this festive season? It might be time to ditch the chocolate calendar and open up YouTube - because a pair of German fitness coaches have come up with the perfect route to a "guilt-free" Christmas.

Storms and borders stem refugee flow to Germany
Refugees arrive in Germany in the snow. Photo: DPA

Storms and borders stem refugee flow to Germany

14 hours ago

The number of refugees arriving in Germany has fallen off sharply in the past few days, with police reporting half the number of new arrivals this weekend compared with last.

Bavarian conservatives want national burqa ban
A woman in a burqa in Munich's Odeonplatz. Photo: DPA

Bavarian conservatives want national burqa ban

15 hours ago

The conservative Christian Social Union (CSU), ruling party in Bavaria, want to pass a new law making it illegal for anyone to wear a burqa in Germany.

COP 21 climate conference
We owe our children a climate deal: Merkel
Environmental activists demonstrate in Frankfurt on Sunday. Photo: DPA

We owe our children a climate deal: Merkel

15 hours ago

World leaders gathered in Paris for the COP 21 climate conference must find an "ambitious, comprehensive, fair and binding" way to stop global warming, Chancellor Angela Merkel said on Monday.

Supermarket Christmas ad is surprise downer
Screenshot of Edeka commercial.

Supermarket Christmas ad is surprise downer

18 hours ago

An ad by German supermarket chain Edeka makes an emotional plea to viewers to remember what's most important during the holidays: family. But did it make the message just a touch too dark?

Hamburg voters throw out Olympic bid plan
Anti-Olympics graffiti on the ground outside a Hamburg U-Bahn station. Photo: DPA

Hamburg voters throw out Olympic bid plan

19 hours ago

Hamburg's bid to host the 2024 Olympics fell at the first hurdle on Sunday when residents voted 'No' in a crunch referendum as the German public again torpedoed plans to host a Games.

Snow and storms usher in first day of winter
Photo: DPA

Snow and storms usher in first day of winter

19 hours ago

A cold front has reached the centre of Germany, casting a spell of cold over the north of the country, while the south remains warm.

Merkel pins refugee crisis hopes on Turkey
Chancellor Angela Merkel (l) speaks with Turkish Prime Minister Ahmet Davutoglu (m) and French President Francois Hollande (r). Photo: DPA

Merkel pins refugee crisis hopes on Turkey

21 hours ago

Chancellor Angela Merkel and other EU leaders agreed a joint action plan to limit the number of refugees arriving in Europe via Turkey at a Brussels summit on Sunday.

Police intervene in Berlin refugee home brawls
Soldiers setting up beds in the hangars at the former Tempelhof airport in October. Photo: DPA

Police intervene in Berlin refugee home brawls

21 hours ago

Clashes broke out Sunday between hundreds of asylum seekers at a shelter in Berlin, in the second mass brawl to erupt over the weekend in Germany's crowded migrant accommodations.

Germany's 10 most-expensive cities
Sponsored Article
How to figure out healthcare abroad
German ISS astronaut tells kids to follow their dreams
Sponsored Article
Why family companies need free trade and TTIP
90 percent of Germans want tougher security
Sponsored Article
'Innovative companies like Hövding benefit most from TTIP'
Are you living in Germany's most expensive city?
Sponsored Article
The cheapest and fastest way to transfer money
Should singer accused of homophobia represent Germany at Eurovision?
70 years since the Nuremberg Trials
The German connection in the Paris attacks
Snow expected on 'first weekend of winter'
10 years of Angela Merkel in Berlin
Could soldiers soon be patrolling German streets?
Second German Paris victim was teacher and journalist
'We can't beat Isis with military means'
How will Germany help France fight Isis?
One German confirmed dead in Paris attacks
'Don't take Paris out on refugees': German defence minister
Germany's minute of silence for Paris victims
Nightclub bans refugees for harassing women
OPINION: Refugees must learn to respect German values
The ancient German community at the heart of Texas
jobs available
Toytown Germany
Germany's English-speaking crowd