Berlin, Germany – The President of the German Institute for Economic Research, Marcel Fratzscher, has called for a “great economic vision and agenda for the next ten years” from the next German federal government.
According to Fratzscher, in an interview with the Rheinische Post, the key obstacle to economic recovery in Germany is a “great mental depression” among businesses and citizens. To address this, a growth agenda 2035 is needed.
Fratzscher emphasized the need for reliability and transparency in economic policy frameworks, which must be clearly outlined in the coalition agreement. This includes not only the reduction of bureaucracy and regulation, but also clarity on tax relief and pension policies, he said.
As a second priority, the federal government should implement a large investment offensive, with special funds for investments and defense. The new government will need to find a way to bypass the debt brake, as the necessary reform of the debt brake is likely to lack the courage and unity, Fratzscher said, referring to the DIW president.