<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Cyclical and structural factors are overlapping in Germany’s sluggish overall economic development. Until recently, there have been more headwinds than tailwinds from both the external and domestic economy. A low momentum recovery is likely to set in after spring. Net immigration has stabilised the labour force substantially; the productivity of immigrants remains subdued though due to integration problems and qualification mismatches. While a mild reform of the debt brake is advisable, a reorganisation of the overall fiscal constitution to better shield municipal investment activity from cyclical budget shortfalls is much more important.</p>
</abstract>

Cyclical and structural factors are overlapping in Germany’s sluggish overall economic development. Until recently, there have been more headwinds than tailwinds from both the external and domestic economy. A low momentum recovery is likely to set in after spring. Net immigration has stabilised the labour force substantially; the productivity of immigrants remains subdued though due to integration problems and qualification mismatches. While a mild reform of the debt brake is advisable, a reorganisation of the overall fiscal constitution to better shield municipal investment activity from cyclical budget shortfalls is much more important.

German Economy Ailing – Reform of the Debt Brake Is No Panacea

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Deutsche Wirtschaft kränkelt – Reform der Schuldenbremse kein Allheilmittel

Cyclical and structural factors are overlapping in Germany’s sluggish overall economic development. Until recently, there have been more headwinds than...

German Economy Ailing – Reform of the Debt Brake Is No Panacea

Publié en ligne: 20 avr. 2024

Pages: 246 - 251

DOI: https://doi.org/10.2478/wd-2024-0068

© 2024 Timm Bönke et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.