Germany's Lindner urges economic turnaround for geopolitical security

German Finance Minister Christian Lindner stressed on the urgent need for an economic turnaround to bolster the nation's geopolitical standing. Speaking at the Free Democrats FDP conference in Berlin, Lindner reflected the key role of economic strength in safeguarding security and countering geopolitical threats, particularly in light of Russian President Vladimir Putin's aggression against Ukraine.

Germany, the largest economy in the eurozone, faced economic challenges last year, emerging as the weakest performer among its peers. Factors such as soaring energy costs, tepid global demand, and historically high interest rates contributed to the economic slowdown. The International Monetary Fund (IMF) has revised downward its growth forecasts for German Gross Domestic Product (GDP), projecting a modest 0.2 per cent expansion in 2024 and 1.3 per cent in 2025.

These projections lag behind the estimates for the eurozone as a whole, signalling Germany's diminished role within the bloc. Previously the sole major economy to experience contraction, Germany now grapples with economic underperformance, highlighting the urgency of revitalizing growth to maintain competitiveness on the global stage.

Lindner stressed the interconnectedness of economic strength with security and geopolitics, emphasizing the need to thwart external pressures and assert sovereignty. Against the backdrop of Putin's aggressive actions, Lindner warned against complacency, emphasizing the imperative of economic growth to counter external threats effectively.

"Putin's goal is to exert power over us, and we must never allow that to happen," Lindner asserted. However, he emphasized that economic growth is indispensable in providing the resources necessary to resist such coercion effectively.

The call for an economic turnaround resonates as Germany grapples with multifaceted challenges, including geopolitical tensions, energy transition, and technological advancements. Lindner's remarks underscore the imperative of prioritizing economic revitalization to fortify Germany's position as a global economic powerhouse and reinforce its resilience against external pressures.

(With Reuters inputs)