• 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
Amazon 'paying local tax on sales in Germany'
Photo: Uli Deck/dpa

Amazon 'paying local tax on sales in Germany'

According to the Sueddeutsche Zeitung newspaper, online retailer Amazon has started paying tax on profits from its sales to German customers in Germany instead of in Luxembourg READ  

German woman, 65, has quadruplets
Photo: DPA

German woman, 65, has quadruplets

A 65-year-old German woman, who already has 13 children, has given birth to quadruplets after undergoing an artificial insemination procedure in Ukraine. READ  

German WWII remains exhumed in Bosnia
Photo: DPA

German WWII remains exhumed in Bosnia

The remains of about 20 people, thought to be German and Italian soldiers killed in Bosnia during World War II, have been exhumed in the east of the country, officials said Friday. READ  

Sotheby's sells Nazi-era art trove find
Some 1,600 works of art were found behind this door in 2012. Photo: DPA

Sotheby's sells Nazi-era art trove find

A painting by Max Liebermann from a Nazi-era art trove found in Germany last year will go on sale in London next month, the first from the collection to be sold off, Sotheby's said on Friday. READ  

Family's ten-year quest for truth about dead son
Jeremiah Duggan. Photo: Justice for Jeremy

Family's ten-year quest for truth about dead son

The family of a British student killed in Wiesbaden over 12 years ago made a fresh step towards justice on Thursday, after a London coroner disagreed with German authorities' belief that he killed himself. READ  

Property of the week
Property of the Week: May 22nd
Photo: Mr Lodge

Property of the Week: May 22nd

Modern and sophisticated: This week’s property combines classic architecture with chic furnishings to create an elegant and luxurious living experience. READ  

83-year-old gets second drug dealing sentence
The judge said, given his age, he was not the ideal candidate for therapy. Photo:DPA

83-year-old gets second drug dealing sentence

An 83-year-old man was handed a six month suspended sentence on Thursday after being caught carrying seven bags of heroin in Düsseldorf. READ  

Carnival of Cultures in Berlin: six top picks
The dazzling colour of 2014's festival parade. Photo: Karneval der Kulturen

Carnival of Cultures in Berlin: six top picks

This weekend Berlin will be lit up by the vibrancy and colour of the Carnival of Cultures, an annual four-day urban festival that celebrates the diversity of Germany's capital. Here are six things not to miss. READ  

Bayern fans bring club's earliest years to light
FC Bayern's first team in 1925, the year of the commemorative publication. Photo: Jewish Museum

Bayern fans bring club's earliest years to light

For decades the early history of FC Bayern München was forgotten, but FCB fans have re-discovered a book from 1925 documenting the club's founding moments. READ  

Top spy admits: We're 'dependent' on NSA
Gerhard Schindler admitted that the BND had made mistakes in its handling of NSA requests. Photo: DPA

Top spy admits: We're 'dependent' on NSA

The head of the German Intelligence Agency (BND) told a special parliamentary committee on Thursday that his agency is 'dependent on' the American National Security Agency (NSA). READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Travel
Why the train strike is bad for passengers and workers
National
Meet Germany's Eurovision hope
Business & Money
Is 2015 a new moment for jobsharing?
Features
How the LGBT rights movement was born in Germany
National
Why you don't make bomb jokes at the airport
National
Why Germany needs a little less tipple
National
Who Germans and Americans trust... and don't
Politics
What the UK election means for Germany
National
Why Germany is great for mums
Features
The Germans with GI dads
Five ways Germany falls short on gay rights
Travel
Giant tortoise found riding Munich rail
National
FCK CPS? A-OK with court
Politics
Opinion: Brexit's dangers for Germany
Features
Smart kids all want to work for BMW
National
Minister shows off top Denglisch
National
Germany's 'other genocide' in Africa
National
Arms firms get a 'must do better' mark on ethics
Sport
Bayern's anticlimactic 25th Bundesliga win
Politics
A Greek learning politics in Germany
Features
The battle of the "Gates of Berlin"
National
Germany's 'very poor' lobbying record
National
Germany's favourite baby names of 2014
Politics
Merkel's 15 years at the top of German politics
Travel
Lowest of the low: how woman exploited Germanwings crash
Features
Spice up asparagus season with The Local's serving suggestions
Sport
Football and the €30,000 firework
Technology
Why scientists oppose killer robots
National
'Cannibal cop' gets 8 years
National
Which city is Germany's worst for drivers?
Technology
Electrifying 'Ostalgia'
National
Cologne Cathedral returns from space
Pupils mourn lost classmates
National
Freed after 25 years on death row
Shutterstock
Sponsored Article
10 things you didn’t know about Zagreb (and why you should go)
Is your workload 'out of control'? You're not alone...
Sponsored Article
What expat parents should ask before choosing a school
Features
Paddy's Day, Berlin style
National
Why east Germans are happy to get it on on camera
National
Uplifting thoughts to get you through the last week of winter
National
What would you do with a 250-year-old pretzel?
National
Who wants the Olympics more - Hamburg or Berlin?
Features
Just why is the German flag Schwarz, Rot, Gold?
Business & Money
Getting German workers and bosses thinking positive
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

6,744
jobs available
Toytown Germany
Germany's English-speaking crowd