Warning on the "new crisis of the euro zone"

Multimedia playback is not supported on your device

A senior German government adviser fears that another European financial crisis is coming.

Mr Lars Feld, one of the members of the German Council of Economic Experts, was one of the first to warn last year against the slowdown in the biggest economy of Europe. Europe.

The German government is forecasting growth of only 0.5% this year, compared with 1.8% a few months ago, while the manufacturing sector faces many challenges.

Now Dr. Feld tells the BBC that he is looking further, especially in Italy.

The country is struggling to recover from the recession and is facing a higher public debt and a banking crisis – which, according to Dr. Feld, could make it vulnerable.

"Potential Contagion"

The Italian government's expenditure and tax expenditure plans in this country mean that its deficit and debt are skyrocketing and will violate the rules set by the European Commission, which further undermines the country's financial credibility.

The eurosceptic government has more than 2 trillion pounds of debt. Concerns about these could put additional pressure on the financial system.

Mr Feld told the BBC: "The Italian banking system is not as safe as one would expect.There is a risk of contagion, particularly from the Italian banking system towards the Italian banking system. other banking systems.

"And in the first place from the Italian government to the entire banking system."

He concludes that "this could look like a new crisis of the euro".

Seven Italian lenders have already been forced to bail out in the last three years.

Slowing Chinese demand

Mr Feld also remains concerned about the risks to his own economy.

More stringent emissions standards affected sales in an under – prepared automotive sector in the second half of last year. Meanwhile, a drought has severely disrupted the transport of goods on the Rhine.

These obstacles were temporary. However, the manufacturing sector – which accounts for about one-fifth of Germany's annual revenue – continues to suffer from slowing Chinese demand and disruptions caused by the trade war between the United States and China.

Beyond these challenges, Germany faces a longer-term challenge: how to stay ahead of intense global competition.

European elections

The government is trying to support the industry.

But Professor Feld does not think that Europe is able to prepare for the digital age – and says there are other ways to make the country more competitive, for example by cutting taxes.

His comments come as voters in 28 countries prepare to participate in European elections.

The problems affecting Germany and Italy have recently prompted the European Commission to reduce its growth forecast in the EU by 1.4% this year, a level slightly above expectations for the United Kingdom.