How the German economy can get back on its feet - an appeal from the IfW economic director

How the German economy can get back on its feet - an appeal from the IfW economic director

According to a report by Deutschlandfunk, the Institute for the World Economy in Kiel warns of a vicious downward cycle due to too much bureaucracy, state intervention and subsidies in the German economy. The vice president and head of economic activity at the IfW, Kooths, emphasized that politics is entangled in an endless cycle of regulations and interventions that ultimately puts a strain on the economy.

The economist suggests reducing regulations, subsidies as well as taxes and duties in order to create more freedom for market forces and provide incentives for greater performance. According to Kooths, the German economy needs a turnaround in order to recover.

This warning from the Institute for the World Economy could have a significant impact on the German market. Reducing regulations, subsidies, and taxes would likely stimulate the economy and increase growth. These measures could encourage companies to invest more and create new jobs. However, they could also lead to loss of revenue for the state, which would have to be compensated for by other means.

It remains to be seen whether politicians will respond to the warning from the Institute for the World Economy and take appropriate measures to promote the economy. Overall, it is important to take a balanced approach to strengthen the economy while also keeping an eye on public finances.