German media: Economists: The current situation in Germany is very serious

Private business investment in Germany has dropped back to the level of 2015 this year, and GDP remains at the level of 2018, while government consumption spending has increased by 25% within 10 years.

The director of the Ifo Institute for Economic Research in Munich, Fister, warned that the German economy continues to be on a downward trend. He said, "Germany's economy has been in recession for many years, but the current situation is even more severe."

When interviewed by the "Bild am Sonntag" newspaper, Fister cited a new report from his institute. It shows that since 2015, government consumption spending has increased by 25%, private business investment has dropped back to the level of 2015, and gross domestic product (GDP) has remained at the level of 2018.

This will lead to social division

Fister warned that "a reduction in private investment means a slowdown in medium-term economic growth, reduced tax revenue, and thus the government will be unable to provide the corresponding services," so Germany's prosperity is facing an unprecedented threat.

He said that for some time now, the average standard of living has been stagnant, which leads to social division because the standard of living of many people is actually declining, while that of others is rising. Fister warned that "the situation in Italy" is happening in Germany. The so-called "situation in Italy" refers to frequent changes in the Italian government after the war and political instability in the country.

Eliminate bureaucracy for businesses

This economist called on the German federal government to launch a "comprehensive reform plan" and implement sweeping social reforms before spring 2026. He called for an end to the introduction of a maternity pension and ensuring that the amount of pension insurance no longer increases.

For businesses, it is necessary to reduce the level of bureaucracy and cancel the comprehensive documentation requirements for carbon dioxide emissions, supply chains, and minimum wages. Fister believes that these measures only increase business costs without any real effect. Eliminating them could create additional economic benefits of up to 146 billion euros per year.

Source: DW

Original: www.toutiao.com/article/1847133296922636/

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