Federal government is planning economic measures: financial expert Fratzscher remains skeptical
According to a report from www.tagesschau.de, the President of the German Institute for Economic Research Berlin (DIW), Marcel Fratzscher, criticizes that Germans talk too badly about themselves and are more likely to be in a mental depression. He sees the structure of the German economy as healthy, but in a bad phase. Nevertheless, he expresses criticism of the federal government's work and sees little cohesion between the traffic light parties. He cites the conflict over basic child security as an example. Nevertheless, he considers the finance minister's debt brake to be a mistake and emphasizes the importance of investments in education, ecological transformation and digital infrastructure. Fratzscher describes the decisions from Meseberg as...

Federal government is planning economic measures: financial expert Fratzscher remains skeptical
According to a report from www.tagesschau.de, the President of the German Institute for Economic Research Berlin (DIW), Marcel Fratzscher, criticizes that Germans talk too badly about themselves and are more likely to be in a mental depression. He sees the structure of the German economy as healthy, but in a bad phase. Nevertheless, he expresses criticism of the federal government's work and sees little cohesion between the traffic light parties. He cites the conflict over basic child security as an example. Nevertheless, he considers the finance minister's debt brake to be a mistake and emphasizes the importance of investments in education, ecological transformation and digital infrastructure. Fratzscher describes the decisions from Meseberg as groundbreaking, but not a major success. He also criticizes the federal government's uncertain communication, which weakens the trust and confidence of companies. Fratzscher emphasizes that the government needs a clear long-term strategy and cohesion. The idea of a reduced industrial electricity price is rejected by both Fratzscher and the FDP. They argue that this would lead to higher electricity costs for everyone, while only a few companies would benefit.
Marcel Fratzscher's assessment of the situation in the German economy should not be ignored because, as President of the DIW, he has extensive economic knowledge and experience. His analysis suggests that German companies and the economy in general are currently in a difficult phase. Mental depression could affect willingness to invest and confidence in the future. Fratzscher also notes that the federal government's communication creates uncertainty and can hinder economic recovery. In order to overcome the economic challenges, he recommends investments in education, ecological transformation and digital infrastructure. These measures could contribute to strengthening the German economy in the long term.
Marcel Fratzscher's opinion can have an impact on the market and the financial sector in Germany. If his assessments are shared and accepted by companies and investors, this could lead to a lower willingness to invest, which in turn could have a negative impact on economic development. In addition, uncertainty about the federal government's long-term strategy and the lack of cohesion between the traffic light parties could further undermine the confidence of companies and investors. This could lead to companies and investors limiting their activities or even relocating them abroad.
Regarding the industrial electricity price, it is important to note that both Fratzscher and the FDP express concerns about distribution and the impact on electricity costs for other companies. The possible implementation of a reduced industrial electricity price should therefore be carefully examined and weighed up in order to avoid possible negative effects on other companies and the economy as a whole.
Read the source article at www.tagesschau.de