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MPs plan pause for run-in with USA

German MPs will stop work to watch their team's World Cup clash against USA on Thursday night - to avoid any controversial bills being passed by a few stragglers in parliament.

Published: 24 June 2014 08:56 CEST

German Defence Minister Ursula von der Leyen celebrates Germany's 4-0 win against Portugal on June 16th. Photo: DPA

"We will stop proceedings in good time before the start of the game," said SPD fraction head Thomas Oppermann on Monday night, referring to Thursday's match scheduled to start at 6pm.

The idea is to avoid a repeat of the scandal two years ago, when during Germany's Euro 2012 semi-final match against Italy an almost-empty parliament session passed a hugely unpopular bill allowing authorities to sell citizens' address details to businesses.

Much time and effort was wasted going back and changing the law again afterwards, when it was shown to be incompatible with Germany's strict data protection laws.

Meanwhile, both the German coach Joachim Löw and German-born USA coach Jürgen Klinsmann have insisted they will only be playing to win after facing repeated questions about whether the old friends may have struck a deal ahead of Thursday's face-off.

The United States' 2-2 draw with Portugal in Group G on Sunday has left Klinsmann's side level on four points with Germany heading into their final group game.

A draw in Thursday's match in Recife would see Germany qualify as group winners with the United States finishing runners up – leaving Ghana and Portugal in limbo regardless of their result the same day.

That scenario has brought back memories of the notorious 1982 group match in Gijon, Spain, between West Germany and Austria. Almost exactly 32 years ago to the day, both teams qualified at the expense of Algeria after a mutually beneficial 1-0 German victory in which both sides went through the motions.

Current German head coach Joachim Löw was Klinsmann's assistant when Germany finished third at the 2006 World Cup and journalists questioned whether the old friends had struck a deal.

Germany's assistant coach Hansi Flick and defender Mats Hummels strongly denied there would be any repeat of the 1982 fiasco after being repeatedly posed the question.

"I can only say a concrete 'no', we've already said we want to win the game and that's how we'll play over 90 minutes," insisted Flick in Monday's press conference.

And Hummels said the Germans had no interest in anything other than a victory. "It would be unsportsmanlike to do that and not fair, besides we want to win the game," said the centre-back. "We're not playing for any result other than a victory."

Klinsmann echoed his compatriots by insisting there is no chance of similar skulduggery from 1982 – dubbed the 'Disgrace of Gijon' – tarnishing Thursday's match.

"You're talking about a game that is decades ago," Klinsmann said. "That is only a part of Germany's history and not part of the United States' history. I think if you look at the past of the US team, we always try to make things happen.

"We will go to Recife and we will give everything to beat Germany. That is our goal."

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Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.