German Finance Minister: “We must prepare the economy for Trump’s possible return”

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The World Economic Forum (WEF) closed its 54th meeting this Friday in Davos, Switzerland, amidst predictions of an economic slowdown and fears of a global economic crisis. Escalation of war in the Middle East and the uncertainty created by the election processes planned to be held in more than 70 countries, including the USA, in November. The possibility of Donald Trump becoming the definitive candidate of the Republican Party and the possibility of a hypothetical victory of Donald Trump against the current Democratic president Joe Biden have already been placed on the radar of risks and opportunities in the economic world.

“We talk too much donald trump in Europe and I think we should prepare to strengthen competition power our competitiveness. “This is the best thing we can do to prepare for Donald Trump’s second term,” German Finance Minister said. Christian Lindner At a discussion table on ‘Global economic perspectives’ within the framework of the Davos Forum.

“Germany is not a sick man. It is just a tired man who needs a coffee and structural reforms after a very short night.”

Christian Lindner – German Minister of Finance

The German minister acknowledged that the growth outlook for 2024 was “not very high”, following a stagnation of 0.3% in German GDP for the whole of 2023, but added that the German economy had proven resilient. “Germany is not a sick man. Lindner explained with metaphors that after a very successful period, Germany was a tired man after a very short night. “And low growth expectations are also a wake-up call that needs to be taken.” a good cup of coffee, If we make structural reforms, we will continue to be a successful economy.

Trump-resistant economy

The discussion table on ‘Global economic perspectives’ was the last before the closing session of the Norwegian chairman of the Davos Forum. Borge Brende. In addition to the German minister, the president of the European Central Bank (ECB) also attended the table. Christine Lagarde; president of singapore, Tharman Shanmugaratnam; Minister of Finance of Saudi Arabia, Mohammed Al-Jadaan; head of the World Trade Organization, Ngozi Okonjo-Iweala; chairman of investment firm Carlyle, David M. Rubenstein and journalist Francine Lacquaas moderator.

The question of whether Trump’s hypothetical return would increase global economic fragmentation was raised on the discussion table. “It’s hard to know whether the world economy is Trump-proof,” said the chairman of Carlyle Group, one of the world’s largest investment companies. “People must understand that (Trump) is a serious political force, and even if many people in Europe are not his followers, his chances of being elected should not be left aside,” he warned. David RubensteinPresident of Carlyle. Rubenstein predicted this Fed will focus on predictable interest rate cuts in the first half of the year This interest rate increase was made to prevent the cuts from being interpreted as the monetary authority’s possible support for Biden.

Regardless of the US election results in November, “We have to be a highly attractive partner and also have a good partnership with the United States. The best thing is to strengthen ourselves by cooperating with each other. That’s the best.” Lindner suggested a way to prepare for American elections.

The president of the European Central Bank (ECB) expressed himself along the same lines: Christine Lagarde. “Our best defense is attack. And to attack, you need to be strong, have a solid market and a real single market,” said Lagarde. In this sense, Lagarde stated that the report ordered by the European Commission from former Italian Prime Minister and former ECB President Mario is reassuring. Draghi said It serves to evaluate proposals that will enable progress in the European single market.

And the president World Trade Organization, Ngozi Okonjo-Iweala pointed out that regardless of the election results, it is necessary to continue supporting global trade as a major engine of global development. Despite all the uncertainties about the world economy, Nigerian predicted that global trade in 2024 “will be better than in 2023.” “We are more optimistic for 2024 and predict 2.3 percent growth in international trade,” he said.

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