Fighting inflation is the biggest priority of the German government and requires reforms that will lead Europe's largest economy out of the inevitable recession, the head of the German Finance Ministry Christian Lindner, reports Reuters.

He also called on China to behave fairly in global trade, noting that he had discussed its debt restructuring obligations with Beijing.

Lindner acknowledged that Germany lagged behind other countries because it was particularly vulnerable to the European energy crisis and supply chain disruptions, and smugly believed in its own economic strength. "Inflation is the biggest danger for our economic foundation, inflation can bring that foundation to erosion,” Lindner said.  According to him they are not at their best compared to other strong industrial nations,.they have relied too long on their perceived strengths.

Recent forecasts show that Germany is on the verge of recession, with the central bank predicting that inflation will remain above 7 percent next year.

Chancellor Olaf Scholz's coalition has prepared a 200 billion euro package to protect households from the consequences of the energy crisis.

Speaking with Bundesbank President Joachim Nagel, Lindner said that Germany has the means to address its shortcomings, including by investing in alternative energy sources.