Is Trump right? ‘Bad’ German self-interest could ‘thwart’ EU nations’ hopes of recovery

Sunday, May 28, 2017
By Paul Martin

STRUGGLING European Union countries’ hopes for an interest rate rise to boost their flagging economies could be dashed by the narrow self-interest of Germany, a business expert has warned.

By JON ROGERS AND MONIKA PALLENBERG
Express.co.uk
Sun, May 28, 2017

Struggling economies within Europe, such as Spain, Italy and Greece have been hoping for a rise in interest rates from the European Central Bank (ECB) as it would increase investment and help the shoots of recovery that are springing up but also help stave off any economy from over-heating and stifle inflationary pressures.

Although at the early stages of recovery, the struggling economies are now showing signs of optimism after a long period of low growth and virtually zero interest rates across the board.

Holiday destinations such as Spain, Italy and Greece have been reporting summer bookings are currently booming with holidaymakers spending their cash, helping to provide jobs and much needed revenue as well as boosting the tax intake.

However, with that increased investment there is a danger though that any rising prosperity could trigger inflationary pressures.

A rise in interest rates in the near future would help curtail any excess and encourage people to save.

While such a measure from the ECB would help those economies an eminent business expert has warned that German self interest in protect its own industries could scupper any hopes of an interest rate rise.

Dr Werner-Josef Gartner, Professor Emeritus of Strategic Management and a director of the Global Research Institute-Gartner, has warned that Germany could quash any plans for interest rises to protect its car manufacturing and engineering industries.

Dr Gartner wrote in Welt: “Germany could thwart the plans to raise interest rates. The reason for this is the restrain of foreign customers of German cars.

“So far the strong sales markets, such as the USA, the UK and China, are more reserved with their orders.

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