Overview
- The German Council of Economic Experts cut its 2026 GDP forecast to 0.9% from 1.0% and raised 2025 to 0.2%.
- The advisers say the €500 billion infrastructure and climate fund has largely covered existing budgets and routine outlays, limiting near-term impact.
- Council member Martin Werding said targeted spending could lift GDP by up to 5% by 2030, whereas current plans would deliver under 2%.
- Chair Monika Schnitzer said the brief manufacturing revival seen in summer 2025 has fizzled, with weakness tied to soft investment and exports.
- The council called for greater transparency and stronger monitoring of the fund as Berlin also pursues extra defense outlays outside standard debt rules.