Germany’s manufacturing-led rebound proves the inadequacy of services-dominated economic models, a leading German politician has argued.
Steffen Kampeter, State Secretary at the Federal Ministry of Finance, said that the services sector could support growth only when it is linked to industry. His comments come as Britain struggles to rebalance its economy towards manufacturing after decades of industrial decline that has left services comprising three quarters of output.
Mr Kampeter told The Times: “Intellectuals who were saying not even a decade ago that the future of growth was all in services were misleading people. Services are a growth factor for developed economies when they are industry-related. So we have to widen and stabilise our industrial base.”
Mr Kampeter said that Britain should contribute more to resolving the Greek crisis. David Cameron has been battling to avoid being forced to join in the Greek bailout.
“The stability of the eurozone is obviously in Britain’s interest,” Mr Kampeter said. “We appreciate the contribution Britain has made in resolving the crisis and we would appreciate it even more if Britain were to contribute more.”