MANNHEIM (MNI) – Germany’s economy is likely to have contracted in
the first quarter but it’s possible that it was only flat, European
Central Bank Governing Council member Axel Weber said Tuesday in
Mannheim.
“We saw stagnation in the fourth quarter and if we’re lucky we’ll
see stagnation in the first. But I fear that the economy contracted in
the first quarter,” Weber, who heads Germany’s Bundesbank, said.
“This is an economic break, not a new recession,” he assured. “But
it shows that we’re not in a normal environment yet.”
Nevertheless, Weber urged ending fiscal stimulus and starting
budget consolidation by the end of the year at the latest. In addition,
he rejected any new tax cuts currently under discussion in Germany.
— Frankfurt Bureau: +49-69-720 142; email: frankfurt@marketnews.com
[TOPICS: M$$EC$,M$$CR$,M$X$$$,MGX$$$]
