Myopic pro-cyclical fiscal policy

Instead the endeavour to accommodate the three parties’ pet projects has resulted in a
potpourri of measures which besides serving clientele interests might address
some of Germany’s problems but do not add up to a consistent future oriented
policy, in our view.

Thus, we see the fiscal policy stance as behind the curve,
the intensified social spending lacks sustainability, tax policy is half-hearted and
the whole approach shows a paternalistic attitude and unease with regard to
market solutions.