- Title: German Econ Min: Upswing to continue despite Brexit, U.S. risks.
- Date: 25th January 2017
- Summary: BERLIN, GERMANY (JANUARY 25, 2017) (REUTERS) GERMAN ECONOMY MINISTER SIGMAR GABRIEL ARRIVING FOR NEWS CONFERENCE ON GERMAN ECONOMY PHOTOGRAPHERS VARIOUS OF GABRIEL HOLDING ECONOMY REPORT CAMERAMAN VARIOUS OF GABRIEL TALKING JOURNALISTS (SOUNDBITE) (German) GERMAN ECONOMY MINISTER SIGMAR GABRIEL, SAYING: "The government's economic balance sheet form this period really can really show itself in public. Ministers have told you this many times this year, but in this instance it is true. I think the data that we have at the very least shows that the country's economy is healthy. For 2014 - the first year of this government - we had 1,6 percent growth, 1,7 percent in 2015 and last year the economy even grew 1,9 percent. The trend is set to continue in 2017." VARIOUS OF JOURNALISTS (SOUNDBITE) (German) GERMAN ECONOMY MINISTER SIGMAR GABRIEL, SAYING: "The populists and right-wing simplifiers are using existing insecurities to suggest we could prevent change by sealing the hatches, building walls and building fences. By the way- sealing the hatches in sailing terms is what the captain orders when the ship is sinking. Sealing the hatches is the language of the right who want to suggest fear and a threatening demise. We know that an open, and global Germany is a condition for prosperity. Erecting fences will lead to Europe providing millions fewer jobs. What the right wing populists are preaching will lead to unemployment and social dislocation and actually the right goal for Germany and Europe is an open economy." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (German) GERMAN ECONOMY MINISTER SIGMAR GABRIEL, SAYING: "The global economy with 3.25 percent will gain in 2017, but we all know that the insecurities created by Brexit, the situation in Europe and above all the politics of the new U.S. government are also growing. The risks of the Chinese growth model are still there. German exports will therefore increase moderately by some 3 percent. Imports, in contrast, on account of domestic demand, will rise significantly this year. Because of this the trade balance surplus will recede a little, which will please the European Commission and the OECD, but it is also a good development. Germany as a globally interconnected country is reliant on free trade. The global trend towards protectionism, which has come from the Brexit decision and statements of the new U.S government, is in our opinion, the wrong path towards gaining prosperity for all." JOURNALIST LISTENING (SOUNDBITE) (German) GERMAN ECONOMY MINISTER SIGMAR GABRIEL, SAYING: "Of course we have to be confident and take opportunities that the U.S. government is locking itself out of. That doesn't mean that negotiations with China will become easier, we will still have to make sure that there is more reciprocity and fairer competition conditions in both sides but I think that it is good if we signal to China, The ASEAN states and India that we do not want to take part in this protectionism. We want to engage with fair trade relations and we are ready to cooperate on a stronger level with these states. It is a chance for us that we could use." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (German) GERMAN ECONOMY MINISTER SIGMAR GABRIEL, SAYING: "It would be totally wrong to enter into a tax dumping competition. But I can tell you how we can lower taxes for all and not just for companies. If we can create stop tax dumping as a replacement for legal tax reductions - we lose 1 billion euros in Europe and 150 thousand million in Germany every year. If we would fight this then we would have the opportunity to reduce tax social contributions." VARIOUS OF NEWS CONFERENCE IN PROGRESS
- Embargoed: 8th February 2017 14:48
- Keywords: Gabriel German economy Trump Brexit export
- Location: BERLIN, GERMANY
- City: BERLIN, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00160KTQQ5
- Aspect Ratio: 16:9
- Story Text: German Economy Minister Sigmar Gabriel said on Wednesday (January 25) he expects the upswing in Europe's biggest economy to continue this year, albeit at a slightly slower rate, and that uncertainties linked to Brexit and future U.S. policies have increased.
German economic growth has been increasing steadily with 2017 receding only slightly because a large amount of public holidays will lead to fewer working hours.
Gabriel also told German companies to seize any trade opportunities in China and Asia and that keeping the economy open was the right way to create more jobs and growth.
"Of course we have to be confident and take opportunities that the U.S. government is locking itself out of. That doesn't mean that negotiations with China will become easier, we will still have to make sure that there is more reciprocity and fairer competition conditions in both sides but I think that it is good if we signal to China, The ASEAN states and India that we do not want to take part in this protectionism. We want to engage with fair trade relations and we are ready to cooperate on a stronger level with these states. It is a chance for us that we could use," Gabriel said in one of his last outings as economy minister before taking over as foreign minister.
"The populists and right-wing simplifiers are using existing insecurities to suggest we could prevent change by sealing the hatches, building walls and building fences...We know that an open, and global Germany is a condition for prosperity. Erecting fences will lead to Europe providing millions fewer jobs. What the right wing populists are preaching will lead to unemployment and social dislocation and actually the right goal for Germany and Europe is an open economy," he added.
Germany should also avoid entering a corporate tax competition with other countries.
"It would be totally wrong to enter a tax dumping competition," Gabriel said when asked about plans by U.S. President Donald Trump and British Prime Minister Theresa May to lower corporate taxes to increase competitiveness.
German Finance Minister Wolfgang Schaeuble said last week that Britain should not try to gain a competitive advantage by cutting corporate taxes. - Copyright Holder: REUTERS
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