Economist Veronika Grimm has expressed a relatively measured perspective on recently implemented tariffs, while simultaneously raising concerns about the broader economic trajectory of Germany and the European Union. In an interview with the “Rheinische Post” Grimm acknowledged that the tariffs will undoubtedly place a burden on the German economy. However, she emphasized that the absence of particularly high tariffs impacting the automotive industry represents a positive aspect.
Grimm indicated a degree of acceptance regarding imports of energy and weaponry from the United States, stating that Germany will likely rely on these imports in the long term regardless. Her critique extended to the EU Commission, with a call for a renewed focus on a growth agenda. She suggested that current practices-utilizing substantial debt-financed spending to mask underlying issues – are creating a reactive and increasingly defensive position for the Union. Current spending patterns, she noted, are contributing to debt accumulation while primarily stimulating growth within the United States.
The economist’s assessment also addressed the German federal government, highlighting the urgency of structural reforms. Grimm cautioned that a failure to enact these reforms swiftly will leave Germany burdened with increased debt and a weakened negotiating position by the end of the current legislative period. She expressed reservations about the level of awareness among policymakers within the governing parties regarding the severity of the present situation, pointing to a shifting geopolitical landscape and a concerning technological decline.
