Economic policy priorities for 2022: combating inflation and promoting investment

Economic policy priorities for 2022: combating inflation and promoting investment

According to a report by www.vorwaerts.de,

The first two weeks of the new year already seem to confirm the gloomy outlook. The rail strike and farmers' protest, especially with their intensity and anger, show the heated mood in our society and our economy. What to do in this situation? What would at least be the economic policy priorities that should now be set? According to a survey by the INSA Institute, combating inflation and the desire for affordable housing are at the top of citizens' wish lists. The high inflation rate of the past two years has left a deep dent in the purchasing power of those employees with lower incomes and especially single parents.

In order to create a balance here, tax or contribution reductions are particularly suitable for low to middle incomes. In addition, higher wages could increase household purchasing power. Investments in modernizing public services and restructuring the economy could also give the sluggish economy more dynamism. A reform of the debt brake appears to be unavoidable in the medium term in order to be able to overcome all challenges.

The proposed measures could have an impact on the market and the financial sector, particularly with regard to tax reform and investment promotion. The planned tax reform could increase citizens' purchasing power, which could have a positive impact on consumption. This, in turn, could stimulate economic growth. In addition, investments in the modernization of public services and housing construction would also strengthen the construction and real estate industry.

It remains to be seen which measures will actually be implemented and how this will affect the market and the financial sector.