500 billion euros for Germany's future: Investments now asked!
500 billion euros for Germany's future: Investments now asked!
In a current discussion round at "Maischberger", Germany's 500-billion-European field was at the center of the debate. Christine Lagarde, President of the European Central Bank, would have been in the event, according to The increase in gross domestic product (GDP) by 0.4 percent in the first quarter of 2024, as reported by the Federal Statistical Office, was described in this context by Theo Koll as a "front-loading effect". This is a consequence of early orders as a result of tariffs introduced by the previous US government under Donald Trump. However, Kerstin Palzer noted that despite these positive growth data, Germany was the “bottom light” in economic development.
discussion about investments and responsibility
The discussion round also illuminated the effects of the special fund on future investments. Christine Lagarde emphasized the need to distribute public investments over a longer period of time, which was supported by Manuela Schwesig. She explained that 100 billion euros for municipal tasks and another 100 billion euros are planned for climate and energy infrastructure. Schwesig contradicted the criticism of Dürr, which denounced the falling investment rate of the traffic light government.
According to the current analysis of the German Institute for Economic Research (DIW), an investment of 500 billion euros could have significant economic influence for the next ten years. This assessment states that public investments of this size could significantly get the German economy out of the crisis, as in Diw is explained.
public investments as a key to competitiveness
The DIW further emphasizes that Germany has invested too little in important areas such as transport infrastructure and digitization in recent decades. This neglect leads to structural and economic challenges for the economy. Public investments could help compensate for deficits and increase competitiveness, which would stabilize the entire economic situation. Calculations show that over 100 billion euros in the next four years could increase GDP by 1.5 percent, as from diw
The expert committee points out that the decline in the share of public investments in GDP makes a continuous contribution to the weak production and income development. While the proportion has tended to increase since the financial crisis, it still remains at a low level. The next challenge for the German economy is to efficiently plan and implement the necessary investment projects in order to sustainably improve the economic requirements.
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