A panel of five prominent economists has questioned the effectiveness of the German government’s current economic policies, suggesting that additional measures are necessary to stimulate growth. The experts argue that while the country’s economic foundation remains strong, the pace of recovery is not meeting expectations, and more aggressive fiscal or monetary interventions might be required.
According to the report, Germany’s economy has been characterized by structural strengths, including a robust industrial base and a skilled workforce. However, the economists warn that recent sluggishness in growth could be exacerbated by domestic and international economic headwinds, such as persistent inflation and global supply chain disruptions. They emphasize that the government has the tools in place to act more decisively but has been hesitant to implement policies that could have a broader impact on the economy.
The panel’s comments come at a time when Germany faces increasing pressure to address economic stagnation, particularly amid rising unemployment and slow wage growth. The economists suggest that a more targeted approach, including increased public investment in infrastructure and support for small businesses, could help generate momentum. They also call for closer coordination between the government and the European Central Bank to ensure that monetary policies are aligned with the country’s economic needs.