Everything on German Fiscal Policy

Germany’s current fiscal flexibility is at risk of being misused for current consumption, with evidence suggesting that a significant portion of special funds may not be directed toward actual capital formation.

Impact: If unchecked, this misallocation will lead to a debt spiral similar to Southern Europe, reducing Germany’s competitive advantage and long-term growth prospects.

— from Future Ratio: Measuring Fiscal Sustainability in Europe · bto – der Ökonomie-Podcast von Dr. Daniel Stelter· Feb 08, 2026