Schaeuble Says Germany Will Shift Spending to Investment

German Finance Minister Wolfgang Schaeuble said Germany’s response to a “clear weakening” of the economy will be a shift in public spending toward investments and away from government consumption.

Schaeuble said the government will lower its growth forecast for Europe’s biggest economy this week and cited sanctions imposed on Russia, geopolitical uncertainty, weaker growth in the rest of Europe and a loss of confidence as reasons. He spoke to reporters yesterday after meetings of finance chiefs gathered in Washington for the annual meetings of the International Monetary Fund and the World Bank.