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Caution! Reiche warns against false economic optimism
Katherina Reiche warns on June 21, 2025 against excessive optimism about the economy. Read more on SPIEGEL.de.
Caution! Reiche warns against false economic optimism
Katherina Reiche, the general manager of the Association of Municipal Companies (VKU), expresses concern about the current economic situation in Germany. In their view, the optimism that has been evident in recent months is exaggerated and belies the ongoing challenges. Reiche warned that the overall economic conditions do not match the positive expectations expressed by parts of the economy. This could have long-term consequences if the economy does not stabilize.
In a recent interview with Mirror Reiche emphasized the importance of a realistic assessment of the economic situation. Energy prices, inflation and uncertainties on the international markets continue to be major challenges. These factors could severely impact growth and jeopardize planned investments in infrastructure.
Expectations and reality
Although companies are experiencing some stability and a slow economic recovery, Reiche believes that an overly positive economic outlook is misleading. She called for taking the challenges seriously and taking the necessary steps to stabilize the economy. This also includes adapted policies that get the really pressing problems under control.
Reiche also addressed the issue of municipal supply. She emphasized that municipalities play a key role in dealing with these crises. It is therefore important that they receive the necessary support and the necessary tools to be able to act effectively.
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