Warning of New Eurozone Crisis & # 39;

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A senior adviser to the German government fears that another European financial crisis could be brewing.

Dr. Lars Feld, one of the German councils of economic experts, was one of the first years to warn about a slowdown in Europe's largest economy.

The German government expects an expansion of only 0.5% this year, down from 1[ads1].8% a few months ago as production is struggling with a number of challenges.

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

The country is struggling to stay out of recession and seizes higher government debt and a banking crisis – which Dr Feld believes could leave it vulnerable.

& # 39; Potential Pollution & # 39;

Expenditure and tax expenditures for the Italian government mean that the deficit and debt are balloon, and set aside violations set by the EU Commission, which undermines its economic credibility.

The Eurosceptic government has over £ 2 trillion worth of debt. Concerns about these can put additional pressure on the financial system.

Dr. Feld told the BBC: "The banking system in Italy is not as safe as we might hope for. It is potential for infection, especially from the Italian banking system to other banking systems.

"And primarily from the Italian government to the entire banking system."

He concludes that "this may look like a new euro crisis."

Seven Italian lenders have already demanded to bail out over the past three years.

Later Chinese Demand

Dr Feld also remains cautious about risks to his own economy.

Tougher emissions requirements hit sales of an under-prepared car industry in the second half of last year, meanwhile, a drought has caused serious disturbance to freight transport on the Rhine .

These obstacles were temporary. But production – which accounts for about one-fifth or Germany's annual income – continues to be balanced by lower demand from China, and disturbances caused by the trade war between the United States and China.

Beyond these challenges, Germany faces a long-term challenge – how to stay ahead of the package in the face of intense global competition.

European elections

The government is trying to support the industry.

But Professor Feld does not feel that Germany effectively equips Germany for the digital age – and says there are other ways to make the country more competitive, such as cutting taxes.

His comments come as voters in 28 countries get ready to participate in the European elections.

The problems affecting Germany and Italy recently asked the EU Commission to reduce its EU-wide growth forecast to 1.4% this year – just a slice above what is expected for the UK.