German Finance Minister Christian Lindner said on Friday that the global economy is "witnessing a new normal" that started in 2023, which include changes such as the rise of artificial intelligence, geopolitical tension and threat of fragmentation, and higher debt levels "which have shrunk our fiscal space to finance transformation." However, he said that "given the historic shocks we've seen these last years," the global economy has shown remarkable resilience.
Speaking at the World Economic Forum, Lindner predicted that the world is seeing "probably the beginning of an era of structural reforms." He also commented on the upcoming presidential election in the United States and Donald Trump's possible second term, saying that "we are talking too much about Trump in Europe." He suggested that the European Union "should prepare by fostering our competitiveness" and defensive capabilities, as well as increasing contributions to NATO to be able to cooperate with the US "at eye level."
