The President of the Munich Ifo Institute has criticized the federal government and accused it of a hesitant attitude. “Unfortunately, everything that is difficult is put on the back burner,” said ifo boss Clemens Fuest South German newspaper. “It won’t work well in the long run,” he continued, warning of “permanent stagnation.”
Chancellor Friedrich Merz (CDU) has “so far avoided the major challenges in economic policy,” Fuest told the newspaper. The government is trying to solve many things with financial means. “It doesn’t take a lot of courage to throw money at everything,” said Fuest. The policy does not solve the problems for the private sector, but rather exacerbates them. The ifo boss cited pension policy and possible future tax and contribution increases as an example.
This article will continue to be updated.
