Germany: Adopting a fiscal expansionary stance

In March, after an unprecedented six months of talks, Chancellor Angela Merkel succeeded in prolonging the grand coalition between CDU/CSU and SPD.
Even though the economy is operating close to potential, fiscal policy will be very expansionary in the coming years.
The positive elements in the programme are the investment in digital infrastructure and education.
However, new pension promises risk compromising the government budget's stability in the longer term.
On the eurozone, the grand coalition pleads for a return to the old concepts as best recipe for stability.
Even though Chancellor Merkel subscribes to the need of strengthening the eurozone, the policies to achieve this remain rather vague or fall back on old concepts. No major changes are expected in this area.

Raymond Van Der Putten BNP Paribas

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Raymond Van Der Putten

BNP Paribas

Expert in Japan, Australia, New Zealand, Benelux, Pensions and Long Term Forecasts.

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