German economy minister says Q2 slump shows 'urgent need for action'

BERLIN (Reuters) -German Economy Minister Katherina Reiche called urgently for economic reforms on Friday after the federal statistics office reported a stronger-than-expected slump in gross domestic product in the second quarter.

"The figures illustrate the urgent need for action," Reiche said in a statement, adding that "further-reaching and bold structural reforms are essential if the German economy is to become competitive".

These reforms include more flexible working hours, a reduction in non-wage labour costs, less red tape and lower energy prices, as well as lessening rather than increasing the tax burden on companies, she said.