Coalition treaty – myopic policy approach
Coalition treaty – myopic policy approach. On March 14, nearly six months after
the federal election and following two attempts of coalition formation – one in
vain – the Bundestag will re-elect Angela Merkel as Chancellor of a renewed
grand coalition. While the predominant feeling is relief that Germany now has a
“decent“ government the new Groko’s political programme does hardly give
occasion to cheer.
The new government’s European course lacks consistency
and its fiscal policy is characterised by a spending bias which seems to rely on
lasting robust growth and buoyant tax receipts without providing the necessary
framework conditions. Instead of consistently strengthening the market forces,
the Groko aims to further increase governmental control of the business sector
and society at the expense of individual freedom.
EU Forecast
euf:ba1.8i:125/nws-01