THE STATE

An Investment Agenda for Germany

The association of German employers (BDI) and the German trade unions (DGB) have called for an increase of investment spending of almost €500bn over the next ten years.

BY

MARC ADAM

PUBLISHED

23. DECEMBER 2019

READING TIME

1 MIN

In a rare display of public unity, German employers and trade unions have demanded that the country’s authorities invest almost €500bn in public infrastructure and institutions over the next ten years. To make this possible it would require reforms to Germany’s debt brake, which for the moment seems to be politically unrealistic; at present the government would be forbidden from increasing investment by this amount. The analysis was undertaken and by the employer-friendly Institut der deutschen Wirtschaft and the union-friendly Institut für Makroökonomie und Konjunkturforschung – the first time the two organizations have worked together. Sebastien Dullien, Direktor of the IMK, explains to makronom.de how the researchers came to their conclusions.

 

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ABOUT THE STATE

KNOWLEDGE BASE

For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.

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