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Warning about new euro crisis



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Media signature A senior adviser to the German government fears that another European crisis is emerging.

A high-ranking Federal Government adviser fears that another European financial crisis is looming.

Dr. Lars Feld, one of Germany's economic experts, was one of the first to warn of a slowdown in Europe's largest economy last year.

The federal government expects growth of just 0.5% this year from 1

.8% a few months ago as manufacturing faces a number of challenges.

Now Dr. BBC field that he continues to look into the distance, especially to Italy.

The country is struggling to stay out of the recession and to deal with higher government debt and a banking crisis. vulnerable.

"Potential contagion"

The Italian government's spending and taxation plans mean that deficits and indebtedness increase and violate the rules set by the European Commission, further undermining the country's financial credibility.

The Eurosceptic government has debts worth over £ 2 trillion. Concerns about it could further put the financial system under pressure.

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Dr. Field told the BBC: "The banking system in Italy is not as secure as we hope, and there is potential for contagion, especially from the Italian banking system to other banking systems."

"And primarily from the Italian government to the whole banking system.

He concludes that "this could look like a new euro crisis."

Seven Italian lenders have already called for a rescue in the last three years.

Slower Chinese Demand

Dr Meanwhile, a drought caused the goods transport on the Rhine significantly water level was hit by the hot summers of a underprepared auto industry in the second half of last year

These disabilities were temporary. However, manufacturing, which accounts for around one-fifth or one-fifth of Germany's annual income, continues to be burdened by slower demand from China and the disruption caused by the US-China trade war.

Beyond these challenges, Germany faces a long-term challenge: How can it be ahead in the face of intense global competition?

European elections

The government is trying to support the industry.

However, Professor Feld does not believe that this effectively equips Germany for the digital age – and says there are other ways to make the country more competitive, such as: Eg tax cuts.

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His comments come as voters in 28 countries prepare to vote in the European elections.

The problems affecting Germany and Italy recently prompted the European Commission to lower its growth forecast for the EU this year to 1.4% – a touch above expectations for the UK.


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