The reactions of the German financial world to the financial part of the agreement presented yesterday by the Social Democrats, the Greens and the Liberals, the three parties that will form the new government in about three weeks, are mostly positive. According to the Federal Association of German Employers’ Associations (BDA), on many issues the agreement is moving in the right direction. Indicatively, the non-increase of taxes or the commitment that Germany will return to fiscal discipline are mentioned. At the same time, however, German employers are blaming the three parties for failing to present an ambitious plan for the country’s digital modernization, renewable energy and demographic change.
The Association of German Industries (BDI) speaks of many “vague declarations of intent”. While positively assessing the goal of creating a modern state, he points out that the announcement by the three parties of a “decade of investment in the future should become a reality.” Although the “constructive spirit” of the decisions is welcomed by the Association of German Chambers of Commerce and Industry (DIHK), it sees a ambiguity in the financing of “many projects”. Instead, projects can be funded, says Clemens Fust, president of the IFO Institute for Economic Research in Munich. Marcel Fratzer, president of the German Institute for Economic Research (DIW) in Berlin, comes to the same conclusion. According to him, the financial plans submitted by the three parties are “balanced and ambitious”. The deal “boosts economic optimism based on fiscal credibility,” said Lars Feder, a well-known German economist close to the Christian Democrats.
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