Germany's population favors state regulation over the free market. What this means for the economy.

Germany's population favors state regulation over the free market. What this means for the economy.

According to a report by amp2.handelsblatt.com,

The federal government's heating law has led to heated debates in Germany. Originally the law would have stipulated that only heat pumps should be allowed in new installations. However, this regulation was weakened due to opposition. The discussion about the heating law raises the fundamental question of how much market and how much state is desired in economic policy. According to a representative survey by the “Initiative New Social Market Economy” (INSM), it appears that Germans are more inclined towards the state than the market. This also applies to issues such as price regulation and the fight against climate change. The majority of the population is in favor of government measures, especially on issues that directly affect them, such as the regulation of rents or the use of government resources in the fight against climate change.

Analysis of the survey results shows that the majority of the population supports government measures such as rent price regulation. In the rental market, greater regulation is seen as a solution, although economists warn of possible negative effects. The fight against climate change also shows that the population is more in favor of innovations and government regulation than the sole use of innovations. However, politicians are increasingly relying on government regulation, which can have corresponding effects on the financial industry and the market. For example, higher carbon prices could affect cost efficiency and the government is betting on limiting emissions through government regulation.

Overall, the survey shows that there is a need for government intervention in Germany, especially in areas that directly affect the population. This can have an impact on the market economy and the financial industry, as government regulations can influence prices and innovations.