Germany to shift spending to investment: Schäuble

German Finance Minister Wolfgang Schäuble said Germany’s response to a "clear weakening" of the economy would be a shift in public spending toward investments and away from government consumption.

Schäuble said the government would lower its growth forecast for Europe’s biggest economy this week and cited sanctions imposed on Russia, geopolitical uncertainty, weaker growth in the rest of Europe and a loss of confidence as reasons. He spoke to reporters yesterday after finance chiefs gathered in Washington for the annual meetings of the International Monetary Fund and the World Bank.

“It’s clear, and that is the response of the federal government, that we will have to increase our efforts for more investments in the public and private sector,” Schäuble said.