BERLIN (MNI) – Rising oil prices caused by political unrest in the
Middle East and North Africa do not at present pose a risk to German
growth, Economics Minister Rainer Bruederle said Tuesday.
The minister told reporters here he did not see such risks
undercutting the government’s current 2.3% GDP forecast, but said
“naturally” such developments were being viewed “with great interest.”
Bruederle acknowledged, though, that such a drift in energy prices
“can indeed be a cause for worries” in that it risks unsettling German
consumers.
“Up to now I don’t see that but one cannot rule out that risk
completely,” he remarked.
Rising energy prices do not yet risk spawning second-round
inflation effects in Germany, Bruederle ventured, but conceded, “This is
always a risk, but I hope that it will stay contained.”
Rather, rising money supply due to measures employed to fight the
crisis could pose greater risks if Europe fails to improve its economic
competitiveness, he argued.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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