(Bloomberg) --
Germany is not on the verge of a recession and old-style stimulus programs are not in vogue any more, Economy Minister Peter Altmaier said on Tuesday.
While Altmaier denied the country was heading into a recession, he said the deteriorating international scenario was beginning to weigh on the export-driven economy.
“I think old-style stimulus programs are not in vogue anywhere anymore, at least I haven't heard any demands of that sort,” Altmaier said. “But I also think it makes sense to improve the framework conditions now and not waiting until the economy gets off track.”
His comments are likely to douse any hopes that Germany could be moving closer to boosting government spending as a way to kick-start the economy. GDP contracted in the second quarter and is expected to do so again in the third, confirming that Europe's biggest economy is in recession.
The government has been expanding investments to strengthen Europe's largest economy but has stayed clear of a stimulus program similar to 2009 when it launched a comprehensive program of 50 billion euros ($55 billion) to counter a deep recession. Back then the measures included subsidies to reduce working hours and a cash for clunkers program to stimulate the ailing car industry.
To contact the reporter on this story: Birgit Jennen in Berlin at bjennen1@bloomberg.net
To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Raymond Colitt
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