Beyond the obvious: Der falsche Schluss
Die deutsche Wirtschaft erholt sich etwas, doch das ist noch lange kein Grund, auf Reformen zu verzichten.
The German economy has been growing stronger than initially anticipated. Forecasts suggest a 1.3 percent increase in overall economic performance in 2026, with a 1.1 percent growth expected in the coming year. Some may attribute this to the billion-dollar debt program initiated by the federal government. Even the Social Democratic Party (SPD) believes in the transformative impact of such state-led economic stimulus measures.
Recently, it was revealed that the party's leadership sees no value in pursuing further reforms. Instead, they plan to implement a "New Deal" – a massive state-funded transformation program aimed at revitalizing the German economy. Much of the current economic issues stem from the past efforts of policy-makers to transform the economy, as evidenced by the energy transition.
Discussions on maintaining the recent economic upturn, assessing potential growth, and identifying necessary reforms were recently had by Daniel Stelter and Prof. Dr. Stefan Kooths, Director of the Research Group on Economic Growth and Cyclical Trends at the Kiel Institute for the World Economy (IfW).
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