After 100 days of Merz: economists draw a sobering conclusion!

After 100 days of Merz: economists draw a sobering conclusion!

Friedrich Merz was elected Chancellor of a black-red coalition on May 6, 2025. After 100 days in office, economists draw a mixed assessment of the economic policy measures. According to the 52nd Economists Panel by ifo and FAZ, which was held from July 29 to August 5, 2025, 170 economics professors gave their assessments of the measures taken so far. The results show a divided opinion on the new government's economic policy.

The survey showed that 30% of participants rated the measures as “somewhat negative” and 12% even rated them as “very negative”. On the other hand, 25% take a more positive view, while 32% are neutral towards the measures. The positive assessments are based primarily on an increased focus on public investments and increasing the defense budget.

Criticism and challenges

Despite positive aspects, there are also numerous critical voices. Economists criticize the lack of reform efforts in the social systems and insufficient impetus for structural reforms, reductions in bureaucracy and climate protection. In particular, the expansion of the “mother’s pension” and the reform of the debt brake have come under criticism. These decisions are perceived as symptomatic of a lack of awareness of reform.

Particularly noteworthy are the additional spending on defense, the strengthening of public investments through a special fund and the announced reduction in corporate tax. However, there are also significant concerns. Almost 39% of respondents see no serious differences from the previous traffic light government, while 41% perceive significant deviations, mainly due to higher defense spending.

Economic sentiment and outlook

Although the general economic mood has improved, the majority of economists agree that too few concrete measures have been taken. When it comes to tax and social policy, “business as usual” is observed, which leads to an assessment of economic policy competence as “medium” for 53% of participants. The same number rate the impact of the measures on the current economy as “rather positive”. However, 12% see a “rather small” influence.

In the medium term, 34% of respondents assess the economic measures as “somewhat positive”, while 37% are neutral and 22% rate them as “somewhat negative”. A key obstacle is the long implementation times for investments and the negative effects that can arise from US tariffs. In addition, there is criticism of a lack of focus on growth-promoting initiatives and a lack of structural reforms.

However, one positive aspect remains: the potential growth effects that could result from investments in infrastructure offer opportunities for future developments. At the same time, there were also participants who were unable to name any successful decisions, which underlines the uncertainty in the perception of the federal government's economic policy direction.

The divided opinion on the previous measures illustrates the challenges facing the new coalition. It remains to be seen whether future decisions can meet the required reform needs and sustainably strengthen the economy. This is also confirmed by the results of ifo, which highlight the growing tensions between a stable economic base and the necessary pressure for reform.

In summary, it can be said that the first 100 days of the black-red federal government could go down in history as a mixed phase. A wait-and-see approach is observed in both tax and social policy. Cicero provides a comprehensive analysis of the opinions and assessments of economists, which is of great importance for the picture of the political situation.