• Germany edition
 
Merkel warns of tougher times ahead
Photo: DPA

Merkel warns of tougher times ahead

Published: 31 Dec 2012 09:15 GMT+01:00
Updated: 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
North braces for storms and floods
Cars waiting to be loaded onto the ferry at Bremerhaven, Lower Saxony, were caught in flooding on Wendnesday. Photo: DPA

North braces for storms and floods

UPDATE: The remnants of hurricane Gonzalo have drifted across the Atlantic and are now threatening North German cities with flooding, forecasters warned on Wednesday. The news followed a night of accidents caused by heavy winds in southern Germany. READ  

Kerry's challenge to Russia at Berlin Wall
US Secretary of State John Kerry at the Berlin Wall. Photo: DPA

Kerry's challenge to Russia at Berlin Wall

US Secretary of State John Kerry visited remnants of the Berlin Wall on Wednesday and warned that East-West tensions again threaten freedom in Europe, 25 years after its collapse. READ  

Satirist lives the dream on EU gravy train
Sonneborn in the EU Parliament. Photo: DPA

Satirist lives the dream on EU gravy train

Martin Sonneborn can’t believe his luck. The German comedian, leader of the political party “Die Partei”, managed to get elected to the European Parliament in May, and has found himself overwhelmed with fresh material. READ  

The Local List
Which high school cliche is your city?
Photo: DPA/Shutterstock

Which high school cliche is your city?

This week's Local List takes a leap of imagination and finds German cities fit perfectly into high school cliche categories. Who's the class clown? Who's the nerd? READ  

Indian schools drop German teaching
Indian pupils enrolled in German classes prepare for Foreign Minister Frank-Walter Steinmeier's visit to their school. Photo: DPA

Indian schools drop German teaching

Thousands of children in India will no longer be taught German after the country's education ministry allowed a contract to lapse. READ  

Syria-bound US teens stopped in Frankfurt
A passenger plane landing at Frankfurt airport. Photo: DPA

Syria-bound US teens stopped in Frankfurt

Three teenage girls from Colorado were arrested by German police at Frankfurt airport after running away from home, reportedly on their way to join Isis in Syria. READ  

Tourists stranded on cable car over Rhine
Tuesday night's rescue operation Photo: DPA

Tourists stranded on cable car over Rhine

Six people, including a family and two American tourists, were left dangling 40 metres in the air over the Rhine for hours late on Tuesday after Cologne's cable car came to a halt. READ  

7:1! Bayern celebrate record in Rome
Arjen Robben celebrates the first goal against AS Roma. Photo: DPA

7:1! Bayern celebrate record in Rome

Bayern Munich were elated on Tuesday night after securing a 7-1 victory against Roma in their group stage Champions League clash. READ  

Nazi U-boat wreck found off US coast
A preserved World War II U-Boat on the beach near Kiel, Germany. Photo: DPA

Nazi U-boat wreck found off US coast

A World War II German U-boat and an American merchant vessel it sank in battle have been found deep in the ocean off the coast of North Carolina, officials said on Tuesday. READ  

Fourth time lucky for free Berlin WiFi?
Coming soon? Photo: DPA

Fourth time lucky for free Berlin WiFi?

Berlin's bid to set up a free city-wide wireless network has so far come to nothing. But city bosses are now trying for a fourth time - and hope to have the project running next year. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Sponsored Article
An international school unlike any other : School on the Rhine
Photo: Fitzpatrick family
Society
'We still don't know what happened to Matthew'
Photo: Mariana Schroeder
Munich
Special Report: Hope and chaos at Munich's refugee shelters
Photo: DPA
Berlin
Robbers blow up Berlin bank
Photo: DPA
Culture
Can you top our history quiz leaderboard?
Photo: Facebook
Society
German motorcycle gang joins Isis fight
Photo: DPA
Politics
UKIP ‘seeks EU pact’ with German satirical party
Photo: DPA
Gallery
PHOTOS: World's biggest erotic fair opens in Berlin
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Photo: DPA
Gallery
The ten richest people in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Sponsored Article
Bilingual education from nursery to graduation at Phorms
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

3,491
jobs available
Toytown Germany
Germany's English-speaking crowd