Financial expert calls for a reduction in bureaucracy and subsidies for the German economy

Financial expert calls for a reduction in bureaucracy and subsidies for the German economy

According to a report by www.deutschlandfunk.de, Kooths, the vice president and head of economic activity at the Institute for the World Economy (IfW), warns of a “vicious downward cycle” in the German economy. He criticizes the increasing bureaucracy, state intervention and subsidies, which cause politicians to react with ever new regulations and interventions, thus creating a negative cycle. Kooths calls for a reduction in regulations, subsidies as well as taxes and duties in order to create more freedom for market forces and provide incentives for better performance.

Kooths' statements reflect concerns that have been discussed in the financial industry for some time. Excessive regulation and government intervention can restrict entrepreneurial freedom and slow economic development. A reduction in regulations and subsidies could provide positive impetus for economic development and increase companies' willingness to invest. This could lead to an increase in economic growth and more jobs in the long term.

Kooths' demands could be discussed and implemented at a political level, which in turn could have an impact on the financial market and the financial industry. A reduction in taxes and duties could improve the profit situation of companies and thus also have positive effects on stock market prices. Investors could invest more in companies that benefit from the measures and thus contribute to a positive development of the stock market.

Overall, it is important to find the balance between government regulation and entrepreneurial freedom in order to enable healthy economic growth. The IfW's demands should therefore be seriously discussed in order to assess possible positive effects on the market and the financial sector.