The economic challenges for Germany and Europe in 2016: A conversation with Christoph Schmidt, chairman of the German Council of Economic Experts

There are signs of momentum in economic growth in the eurozone, but longer term challenges persist. At the same time, the rise in refugee arrivals to the continent, and recent terrorist acts demonstrate how sudden, unexpected challenges can emerge. As leaders across Europe debate how to address the needs of those arriving from countries in conflict, economic policymakers must find viable paths to long-term growth in the eurozone and manage the implications of the refugee crisis for the region. Germany, as the economic engine of the euro area and a large recipient of refugees, will be key to finding solutions to these issues.

On December 15, the Global Economy and Development program at Brookings hosted Prof. Christoph Schmidt, chairman of the German Council of Economic Experts, an independent economic-policy advisory body, for a discussion of the key issues facing European economies in 2016 and beyond. Prof. Schmidt presented the Council’s latest view on the German economy as well as policy proposals for dealing with the refugee influx, monetary policy and institutional reform in the euro area, and ways to ensure sustainable growth prospects for Germany and the wider region.

Kemal Derviş, vice president and director of Global Economy and Development, provided introductory remarks, followed by a presentation and discussion with Prof. Schmidt.