out whether it is or not i spoke to marcel foster he's the chief of the influential german institute for economic research and i asked him how bad the contraction really is and how much of it is homemade. we're likely to have a nother quarter of negative growth germany's probably in a technical recession but it's no reason to panic the structure of the german economy is sound we have companies that are competitive that have high earnings we have a very strong labor market with record employment and we have a strong government with significant fiscal surpluses so the problem really comes from global trade which has been contracting by 8 percent over the last year germany's economic model depends on trade so this is the result of the global crisis from a trade conflict from uncertainty about brics it about italy about geopolitical conflicts so we should really not panic the german economy is fundamentally sound so you're saying that is nothing of its own that i don't think this is a homemade slowdown germany has challenges in the long run to make the transformation from industry to services towards digitali

the president of the german institute for economic research one of the most influential economists in germany for 5 long something to show him. if i try this departure we've brought along a black 0 you're not a fan right and it's unfair for anybody and you know i'm not per se it depends on a balanced budget shouldn't be an end in itself it's fine when the economy is thriving but we're in the 3rd quarter of 2019 and technically we're in a recession that's why the 2nd quarter with negative growth so the politicians need to act they need to do something to stabilize the yukon. and automatically need to secure jobs that's the real issue the black 0 is all very well but it's basically a fetish. every year since 2014 the german states revenues have been higher than its expenses even though public services like schools and hospitals are underfunded railways too. we need to move on from this crazy idea that saving is always good is always bad the opposite is true when times are tough we need to invest so that people can keep their jobs and we can guarantee stability. teat. so keeping the futu

the president of the german institute for economic research one of the most influential economists in germany for a long something to show him. the transistor pocho we've brought along a black 0 you're not a fan right and it's unfair because you know i'm not per se it depends on a balanced budget shouldn't be an end in itself it's fine when the economy is thriving but we're in the 3rd quarter of 2019 and technically we're in a recession that's why the 2nd quarter with negative growth so the politicians need to act they need to do something to stabilize the you can't. we need to secure jobs that's the real issue the black 0 is all very well but it's basically a fetish. every year since 2014 the german state's revenues have been higher than its expenses even though public services like schools and hospitals are underfunded railways too. we need to move on from this crazy idea that saving is always good is always bad the opposite is true when times are tough we need to invest so that people can keep their jobs and we can guarantee stability. so keeping the future in mind the future and a

confidence among german business executives has sunk to a near 7 year low as survey of germany's institute for economic research shows fears of a recession are growing as the german economy contracted during the 2nd quarter of this year slowing global trade has hit the country which relies heavily on x s. greece has been through years of economic and financial hardship some of which can be summed up in one figure 60 euros per day that's how much or that's how little greeks were able to withdraw from their bank accounts after the government had introduced capital controls in june of 2015 spooked by the country's financial troubles panic cash withdrawals threatened to topple the banking sector as greece recovered over time the government loosened the measure now it's set to be scrapped altogether. and historical moment for greece after prime minister kiriakou a smith so talk is told parliament enough business that greece was lifting all remaining limits on the free movement of capital of brault after 4 years of restrictions on. the removal of capital controls from the 1st of september marks a further return to no

saying line he's head of program economic research at the merrick's mccotter institute for china studies here in berlin and he's just returned from hong kong to brief german media about the economic fallout from the unrest there i asked him if hong kong is running the risk of losing its appeal to international investors. hong kong as a global financial center has already taken damage in this particular is not so much from the protest itself but from china's reaction to the protests the political pressure that was put on companies such as cathay pacific are part of political influencing of companies and as a global financial center it is essential to remain or have the free capital controls obviously but also have a functioning rule of law in this interference in influencing political influencing of companies is eroding some of the essential institutional foundations necessary to have a global financial center but is this part of china's strategy is that it is interest to make hong kong less appealing it should not be in its economic interests it is vital for hong kong to operate is a gateway to global financial markets rest of china has strict capital con

german figures. matt: dani burger looking at the slowdown. joining us in berlin is marcel fratzscher, head of the diw institute for economic research.i showed us. he is notz saying willing to boost spending to spur economic growth or to fix infrastructure, boost social services, or on the military -- arm the military. what does that mean to you? marcel: the german government still has not understood that we are in a cyclical downturn. the german economy domestically is actually quite sound if we look at the labor markets. germany is very dependent on exports. more importantly, the german government is not using its fiscal space. it has all the means. 1.2% of gdp fiscal surplus this year. it does not understand now is the right time to have a fiscal impulse to have a soft landing. germany's economy is highly dependent on exports. matt: aren't they at least boosting borrowing? because you have a moment in history the likes of which we have never seen before. the german government can borrow, is paid to borrow all the way out to 30 years they can issue 100 year bonds for basically nothing. should they be doing that? marcel: they should

assange line he's head of program economic research at the merrick's neck cutter institute for china studies here in berlin and he's just returned from hong kong to brief german media about the economic fallout from the unrest there i asked him if hong kong is running the risk of losing its appeal to international investors. hong kong as a global financial center has already taken damage in this in particular is not so much from the protests itself but from china's reaction to the protests the political pressure that was put on companies such as cathay pacific are part of the political influencing of companies and as a global financial center it is essential to remain or have the free capital controls obviously but also have a functioning rule of law in this interference in influencing political influencing of companies is eroding some of the essential institutional foundations necessary to have a global financial center but is this part of china's strategy is that it is interest to make hong kong less appealing it should not be in its economic interest it is vital for hong kong to operate as a gateway to global financial markets rest of china has strict capi