The Sound of Economics How to fix a staggering Germany
Feb 19, 2025
Jens Suedekum, an economics professor, and Niclas Poitiers, a researcher at Bruegel, dive into the challenges facing Germany ahead of the crucial 2025 federal elections. They analyze the stagnation of the German economy since 2019 and the difficulties in adapting economic strategies amidst external shocks. The discussion highlights the political fallout from the Traffic Light Coalition's collapse and critiques the government's focus on issues like heat pumps, arguing for a more robust approach to bolster growth and stability in a volatile global landscape.
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Germany's Economic Crossroads
- Germany's economic situation has been stagnant for five years, hindering its own growth and impacting Europe.
- The upcoming election is crucial for determining Germany's economic and political future.
Traffic Light Coalition Failure
- The "Traffic Light" coalition, formed by Olaf Scholz, struggled due to internal conflicts, particularly regarding fiscal policy and the debt break.
- The coalition ultimately failed, leading to snap elections.
Shifting Political Sands
- Angela Merkel's era masked a fracturing German political landscape, with a shift towards the right and economic focus.
- The debt break's constraints are recognized across the political spectrum.