Economic Challenges: Are higher taxes enough without a growth plan?
The five economists have handed over their annual report to Chancellor Friedrich Merz and are calling for defense spending to be included in the budget.
Quick Look
- According to calculations by the Economic Advisory Council, Germany is threatened with a debt crisis.
- In the annual report, the economists call for defense spending to be integrated into the budget by 2040 and suggest financing options.
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Why It Matters
The Council of Experts has handed over its annual report to the federal government and addresses the financial burden on the state budget.
Germany is threatened with a debt crisis. This is shown by new calculations from the Economic Advisory Council.
On Wednesday, the five economists handed over their annual report to Chancellor Friedrich Merz (CDU). In it, they demand, among other things, that defense spending be transferred back to the budget by 2040. In the report, they suggest how the federal government could raise the necessary 300 billion euros for this.
Rürup misses statements on demographics, migration and customs policy towards China. “I don’t see a growth policy concept,” he says. The fact that China has taken over the leadership role in the German auto industry remains unmentioned.
Hüther criticizes the fact that the Ministry of Finance could concentrate too much on tax increases and too little on reducing spending.
Open Questions
- How exactly should the 300 billion euros be raised?
- What measures is the Ministry of Finance taking?
