The German economy shrank by 0.3 percent at the end of last year. The International Monetary Fund has only forecast growth of a meager 0.5 percent for the current year. In order to stimulate the economy again, both Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) are promoting lower taxes for companies.
But the traffic light parties disagree about how to get there. While Lindner is campaigning for the abolition of the solidarity surcharge, Habeck is proposing another debt-financed special fund. Chancellor Olaf Scholz (SPD) reminds his ministers of the already planned Growth Opportunities Act.
Bastian Brinkmann, deputy head of the SZ economic department, advocates a “smart mix” of tax cuts and subsidies. Germany has the lowest debt of all G-7 countries, i.e. of the seven largest economies in the world. That’s why you could still take on debt there to stimulate the economy.
For further reading:
The text about concern for King Charles can be found HERE.
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