German Economist Criticizes Unrealistic Election Promises

DIW President Marcel Fratzscher accuses political parties of misleading voters with costly and impractical tax relief proposals.

Marcel Fratzscher, head of Germany's DIW economic institute, has criticized election promises from all major political parties as unrealistic and misleading.
Fratzscher highlighted the enormous costs of proposed tax cuts, with the FDP leading at €138 billion, followed by the CDU/CSU at €99 billion, the Greens at €48 billion, and the SPD at €30 billion.
He warned that such promises ignore Germany's urgent need for increased annual investments of €40 billion in infrastructure and €30 billion in defense.
Fratzscher argued that these spending needs cannot be met through existing budgets, suggesting that new debt should not automatically be viewed negatively.
The economist emphasized that investments in areas like roads, schools, and digital infrastructure are essential for Germany's long-term economic growth.