A recent assessment of the German government’s first 100 days in office reveals a divided opinion among leading economists, according to a survey conducted by the Ifo Institute. The Ifo Economists Panel indicates that 42 percent of participating economists view the government’s economic policies to date negatively, while only 25 percent express a more positive assessment.
A key area of concern centers on pension policy. Researchers note a perceived misalignment between necessary reforms and current governmental actions. Specifically, the expansion of mothers’ pensions and the lack of consideration for raising the retirement age are drawing criticism. The government’s approach to modifying the debt brake is also generating debate amongst the surveyed economists.
Conversely, the economists generally view the planned strengthening of public investment – facilitated by the establishment of a special fund – favorably. Positive evaluations were also given to the “investment booster” – enhanced depreciation options for businesses – as well as increased defense spending and the announced corporate tax reduction.
Looking at the short-term economic impact, half of the respondents anticipate a positive effect from the government’s policies. However, optimism wanes when considering medium-term growth prospects, with 34 percent expecting positive outcomes and 26 percent forecasting negative growth.
Researchers emphasize that while fiscal policy – particularly debt-financed initiatives – is expected to provide a short-term boost, sustainable economic growth necessitates market-oriented structural reforms, which are currently absent.
The 52nd Ifo Economists Panel involved 170 economics professors and was conducted between July 29th and August 5th, 2025, in collaboration with the “Frankfurter Allgemeine Zeitung”.