Policy Article
Despite full cash boxes: do not implement every election promise in the next coalition agreement! (in German)
Kiel Policy Brief, 112
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Germany
Business Cycle
Fiscal Policy & National Budgets
Economic Policy in Germany
The paper addresses the public budget surpluses in Germany against the backdrop of the coalition talks between CDU/CSU and SPD. The author explains that the current public budget surpluses are due to the economic boom and low interest rates. With a view on the upcoming fiscal burdens in the course of demographic change he advises against devoting surpluses one-to-one for tax cuts or additional spending. He also warns against an additional fiscal stimulus during the current boom.
