Germany is facing serious economic difficulties as its economic growth has slowed to a historic low. The latest data shows that the economic growth of Germany has reached the lowest indicators in the entire history of observations, which is caused by a number of factors, among which the key is the policy of the debt brake.
Economic growth in Germany has slowed to a historic low, writes BILD economic columnist Nils Heisterhagen.
According to his data, since 2019, the economy of Germany has been growing as slowly as ever in the history of the country, that is, since 1949. Real wages, as indicated, are now lower than in 2018.
BILD reached out to Bert Rürup, ex-chairman of the Council of Economic Experts under the German government, for comment. He considers the main problem to be the policy of the debt brake, which forbids taking loans to replenish the budget.
"The first thing that is needed is the reform of the debt brake in order to quickly update and modernize the infrastructure, which in many ways has fallen into disrepair. It would also be wise to be more open to technology when it comes to making the right energy transition," Rürup said.
He considers it necessary to change the system of allocating civil assistance (Bürgergeld) to each unemployed person. Currently, it is 563 euros per month. For some, as the publication notes, it is more profitable to receive assistance and work part-time in shadow employment than to go to a permanent job. "Civil assistance is not an unconditional basic income, but social assistance, which, by design, should be aimed at returning to regular labor relations," Ryurup said.
