“It is likely that the traffic light will fall hard in 2025”

Clemens Fuest

The Ifo boss advises the traffic light to settle their disputes quickly.

(Photo: dpa)

Berlin Mr. Fuest, the leaders of the coalition have adjourned after around 19 hours of negotiations. What will you most urgently need to clarify on Tuesday in the continuation of the coalition committee?
There are plenty of open issues. The budget is not officially negotiated. But one thing is clear: the traffic light must first clarify the central questions of its financial policy. All other topics depend on it, above all the transformation of the economy and the energy transition. So: Either you have to use the debt brake, you need more income or less expenditure. Since the first two options are blocked, spending discipline needs to be addressed. The traffic light has to decide what it needs its money for the most.

Are you surprised that negotiations have taken so long?
Not really. The FDP suffered a series of electoral defeats. And the Greens are becoming increasingly unpopular among the population. The blockades have also left their mark on Chancellor Olaf Scholz.

Read on now

Get access to this and every other article in the

Web and in our app free of charge for 4 weeks.

Further

Read on now

Get access to this and every other article in the

web and in our app.

Further

source site-12