Germany is Europe’s engine of growth. Berlin has also been running budget surpluses over the last five years.
But right now, Germany’s economy is sputtering and could slip into recession. The country has enough headroom to stimulate the economy, though Chancellor Angela Merkel is not willing to travel down that road.
Berlin finds itself caught in the middle of US President Donald Trump’s trade war with China, that is hurting global growth and as one of the world’s leading exporters it is one trap it cannot escape.
That has tipped German industry, which accounts for a fifth of its economy, into recession but unemployment is holding up at almost record levels. That is just one positive for the economy.
“I think a country like Germany could afford having a larger public debt and also there are major investment needs,” Zsolt Darvas, a senior fellow at Brussels-based think-tank Bruegel tells Al Jazeera.
He argues that a much more forceful investment programme needs to be implemented in Germany.
Will 5G technology lead to more cyberattacks?
As we move towards 5G mobile technology, there are growing concerns that with more devices connected to the internet, cyberattacks could increase.
And nothing exists in isolation, the world leader in 5G technology is China’s Huawei, which is at the centre of a trade war.
The US believes Huawei’s 5G technology could be used by China to spy on other nations and sensitive industries.
Protecting our ability to surf the net and use our mobile phones and apps is a $100bn-a-year industry.
It is startling that 88 percent of businesses have experienced cyberattacks in the last year. And alarmingly, one in three has been breached more than three times in the last year, according to research by cybersecurity company Carbon Black.
With the trade war, a global economic slowdown and a president facing impeachment, Patrick Morley, chief executive of Carbon Black, points out that uncertainty causes concern across global markets.
“For business leaders around the world, you have to ask yourself what the potential impacts are to you and to your company.”
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