The recent trade agreement and its associated tariffs are expected to place a burden on the German economy, according to leading economic advisor Veronika Grimm. In an interview with the “Rheinische Post”, Grimm expressed a cautiously optimistic view, noting the absence of previously proposed high tariffs specifically targeting the automotive industry as a positive development.
Grimm acknowledged that imports of energy and weaponry from the United States would be necessary in the long term, suggesting a degree of acceptance regarding this aspect of the arrangement.
However, the economist also voiced criticism directed towards the European Commission, highlighting a need for a proactive, internally focused growth agenda. She argued that current strategies of masking underlying issues with substantial, debt-financed spending are proving unsustainable and are pushing the EU into a reactive position. Grimm expressed concern that this approach leads to increased debt and shifts economic advantages to the United States, ultimately leaving Europe with only the burden of debt.
Further, Grimm cautioned the German government, emphasizing that a failure to implement crucial structural reforms in a timely manner risks leaving the nation with escalating debt and a weakened negotiating stance by the end of the current legislative period. She questioned the level of awareness among policymakers regarding the gravity of the present situation, pointing to significant shifts in the geopolitical landscape and a growing technological disadvantage for Germany.