Reference no: EM131516700

Question: National Debt Problems

Germany is the largest economy and second populated country in Europe. First of all, Germany plays an important rule in political, defense power. State of Germany had two devastating World War that caused so many life, and increased the debt. Germany made the European Union and start the currency exchange in 1999. Natural resources of Germany are coal, gas, iron, uranium, and construction material. Germany has different ethnic groups such as Turkish, Polish, but 91.5% are German. The economy is the fifth largest in the world, it export machinery, vehicles, and chemical. Low fertility and increasing of immigration put the country in tough economy situations. With a high unemployment rate and low growththe government reformed new strategies. The government introduced a minimum wage of 8.50 euros. "In 2008-2009 there was a tax cut by Angela Markel which increased the total budget deficit" (The World Fact book). In 2010 with slower spending and higher tax the deficit reduced. The only thing Germany is suffering is low investment infrastructure. Germany planning to shut down all nuclear plants and instead open renewable energy. The export commodities are, foodstuffs, metals, machinery, plastics product.

The import commodities data processing equipment, pharmaceuticals, and agriculture. Germany has strong Federal Armed Forces. Import and export make about 86 percent of Germany GDP.

According to country public debt as of 2016 Germany national debt is 2,369,173 million dollars. This amount is equal to 68 percent of Germany GDP. Germany debt has been rising since 2006. By 2020 Germany national debt will fall back to 59 percent.The super competitive keep Germany alive. Even though Germany has good export but still face some significant economy problems.Specailly during World War II, which destroyed 20 percent of all German housing. Overall Germany and all Europe getting better. The only place that take times to get back is Greec in Europe. Germans admitted that will delivery another aid for Greece. So Germany National Debt, getting better because of the tax revenues. But still need to pay 2.1 trillion euros. Many cities and municiplaties are brook in Germany. All German party want to change the but it will take time to change the cities infrastructure and municipleas. They have one option increasing tax on high earners. There are lot of issue some parties want invest on pet project, some on education and Left Party want increase social welfare. Germany have been many argument on mandatory minimum wage for all employee. Another issue is that Germen health care own by most private insurance.

The debt of Germany accumulatein many way. First Germans support taking refugees from all over the world. The international crises in Syria hundred thousands people fled to Germany. Germany accept of the refugees. They give shulter to 5,000 refugees. This cost so much Germany to find places for refugees,food and health care. In Germany rule that refugees are not allowed to leave the shelter and without permission or work.The national debt of Germany depend on Euro crisis, domestic debt, fair salaries, energy and Syria. Beside that, Germany stand off over Greece national debt. Germany will borrow more money to pay the old debt and taking care of refugees. All German parties still want keep the budget in balance. Germany can not pay the old loan from income tax so the interest rate get higher every year. The burden on Germany shouldler refugees since World War Two. According ot DIW spending on refugees will rise form 6 billion in 2016 ot 15 billion on 2017. This will a massive debet accumulated on Germany. German people working to repay the debt of the earlier government. Some of the debt is from luxuriouse lifestyles or corrupt government. Under the international law people of the country responsible to debt.
There are few stops has been proposed with Germany National debt. First of all, rasingtasx, cutting spending and stop barrowing money year. if German does balance the debt problem the country willfal into accumatulte growing interest. They do need to creat job by restoring infrastructure and housing destroyed by the war. They need to accept very manableamount of refugees. Germany need pay the old loans.
There are few solution has been to national debt problem of Germany. Cut the spending such as social security, and not bailout the stocks and bonds. The administrations has bailout banks few time bad loans. The govnernemtn should not depend on the huge percent of GDP on investors.

European summit had meeting about on octobber about debt relief of Germany. This meeting was between G20 finance minster and Paris. There were trying come up with new package with will fulfilled and solve debt problmes. The European bank took almost 50 percent of loss of Greek debt.