FDP leader Dürr warns: Germany is threatened with zero growth despite a mountain of debt!

FDP leader Dürr warns: Germany is threatened with zero growth despite a mountain of debt!

FDP leader Christian Dürr has warned urgently about the consequences of the new federal government's budget policy. In a recent statement, he pointed out that the federal government is significantly reducing the investment rate, despite a historic debt package. This comes at a time when much-needed reforms are still awaited. Dürr calls for structural reforms and an energy policy that is open to technology in order to put Germany on a course that enables sustainable economic growth. Without course corrections, says Dürr, there is a risk of permanent zero growth.

He criticizes the government not only for its ineffective measures, but also for the missed opportunities for future-oriented investments. The new coalition's planned investment rate is 15 percent, below the 17 percent of the previous government. Dürr sees this development as an expression of weaknesses in household management, which will be a burden for future generations in the long term. A worrying trend can also be seen in the fact that funds from the core budget are increasingly being channeled into consumer spending, which will put additional strain on debt repayment and increasing social contributions for young people in the future.

Economic prospects and need for reform

In a talk show, Dürr explained that Germany needed more courage to change and increased reform policies. He said that an idea like the stock pension not only relieves the burden on younger generations, but could also ensure stable retirement provision for older people. The FDP leader sees a pronounced unwillingness to reform within the government, which would only make an economic awakening possible through real structural reforms. He also criticizes the subsidized measures to cap electricity prices as a wrong approach and calls for openness to modern energy production technologies such as nuclear fusion and CO₂ storage.

In a recent report, the Bundesbank highlighted the need for reforms in debt policy. The choice of values ​​for the federal government's net borrowing is part of a reform decision to keep the debt ratio stable below 60 percent. The aim is to set a higher limit, which is intended to have a stabilizing effect on the debt ratio in the event of weak growth. It is unclear how the new EU rules will affect the existing requirements. In the past, the credit limit was never fully utilized in budget implementation.

Budget strategies and future challenges

The Bundesbank estimates medium-term real potential growth at just 0.4 percent, which underlines the urgency of consolidation measures. Even if the debt brake is adhered to, additional debt from municipalities or new emergency loans could exacerbate the situation. The proposed net borrowing limits could be crucial in the future to keep the debt ratio stable. The legislature will decide which limit values ​​should apply in the future and it is recommended that the assumptions regarding the appropriateness of these values ​​be regularly reviewed.

The current economic situation requires a rethink and fundamental reforms, as FDP leader Christian Dürr put it. Otherwise, Germany could end up in a phase of permanent zero growth and a debt-laden future for the next generation.

For more information, visit the articles from FDP and the Bundesbank.