A renewed Groko
The impact from probably soaring government spending will likely be more felt.
A renewed Groko seems to be willing to devote substantial funds to the widely
demanded „modernisation“ of Germany’s infrastructure.
All three parties
advocate an increase in public investment especially on education, on the digital
infrastructure (broadband network) and on transportation. However, many of the
parties’, especially the SPD’s, pet projects in the field of education are under
federal states‘ responsibility. Furthermore, the CDU/CSU and the SPD want to
intensify the public promotion of R&D spending, especially in favour of small and
medium sized enterprises. The SPD demands increased government spending
on (public) housing. However, there are virtually now spare capacities in the
construction industry, which would limit demand effects at least in the short
term.
Intensive debates are likely with regard to defense spending. The SPD is
opposed to higher spending as requested by the CDU/CSU and international
institutions.
EU Forecast
euf:ba18h:121/nws-01