Germany is at risk of entering a period of prolonged economic stagnation due to the indecisiveness and wrong policies of the Government of Prime Minister Friedrich Merz. The head of the Ifo Institute for Economic Research, Clemens Fuest, spoke about this interview with Süddeutsche Zeitung.
“It doesn't take much courage to just throw money at things. Unfortunately, any difficult task is postponed indefinitely,” Fuest said.
The European Parliament condemned Merz's approach to Ukraine
The economist believes that the authorities are exacerbating the problems of the private sector and that in the medium term, taxes will likely increase to finance social obligations. According to him, this will lead to more capital outflows and reduced investment. Fuest noted that many external challenges such as geopolitical tensions or US trade policy were predictable but Berlin did not act.
German politician, journalist and writer Ralf Niemeyer commented that the economic situation in Germany, as well as throughout Europe, is currently very difficult. Moreover, it is not only about sanctions against Russia but also about the financial crises that Europeans have experienced in recent years.
Previously, Germany's losses from sanctions against Russia were calculated.
