Federal government launches emergency program: Is the turning point for the economy coming?

Federal government launches emergency program: Is the turning point for the economy coming?

The German economy has been at a standstill for three years. In order to counteract the stagnating economy, the new federal government has decided on an emergency program that is primarily aimed at tax relief for companies and reducing bureaucracy. This reports TIME. New depreciation options should also make it easier to invest in machines and factories.

As part of this discussion, the President of the German Institute for Economic Research (DIW), Marcel Fratzscher, expressed his opinion in a current economic podcast. He emphasizes that the mood in the German economy is currently worse than the basic reality. Fratzscher appeals to the need for more confidence in investments and sees the planned tax cuts as a helpful measure, but not as the sole solution to the economy's problems.

Criticism of the federal budget

A detailed analysis of the new federal budget shows that it does not adequately address the urgently needed changes. Loud DIW There are no clearly visible cuts in climate-damaging subsidies, which cost over 60 billion euros per year. Furthermore, there are no measures to reduce other tax privileges that could contribute to economic competition.

Fratzscher pointed out in his podcast that corporate taxes have not been significantly reduced in the last 50 years without hurting growth. Nevertheless, he calls for a fundamental willingness for changes and painful reforms in Germany. These are required in order to meet the challenges of the current economic situation.

Financial policy and its consequences

The federal government's restrictive financial policy is seen as one of the biggest brakes on economic recovery, but is not adequately addressed in the new budget. The expected effects of this policy are clear: lower sales for companies, lower wages and incomes for citizens. Experts criticize that the federal budget is not suitable for initiating a real economic turnaround.

The podcast also discussed the role of pain relief in political discussion. The moderator Zacharias Zacharakis and the experts Carla Neuhaus and Jens Tönnesmann emphasized that only an honest and in-depth examination of the economic conditions can lead to stabilization in the long term.

Overall, a picture emerges that is characterized by both challenge and cautious hope. It remains questionable whether the federal government's measures can provide the necessary impetus for a comprehensive economic turnaround.