This text was also published in German in ZEIT ONLINE on February 3, as part of the op-ed column “Fratzschers Verteilungsfragen“.
“Time for fairness“ is the motto of the new candidate for Chancellor of the German Social Democrats, Martin Schulz, in his campaign against Angela Merkel. The slogan is bound to strike a chord in a country where 70 percent of the people feel that inequality is too high. But the issue of fairness should not be the one at
The Brexit decision is a catastrophe for all Europeans. The economic costs will be enormous for all of Europe. Britain could slide back into recession. We at DIW Belin expect a 0.5 percentage points lower economic growth in Germany in 2017 as a result of lower German exports to the UK alone. The risk is highest for countries such as Italy, which are vulnerable and could slide even deeper into the financial crisis.
I expect major volatility in financial markets
A selection of experts answer a new question from Judy Dempsey on the foreign and security policy challenges shaping Europe’s role in the world.
The question is not whether debt relief is needed, but how and when it will take place.
Almost one year after the Greek debt drama, which almost ended with Greece’s exit from the eurozone, the conflict between the Greek government and its European partners is again heating up. The bad news is that progress on Greek
Nowhere in Europe are income, wealth and opportunities as unequally distributed as in Germany. “Germany’s social market economy no longer exists”, says Marcel Fratzscher from the German Institute for Economic Research.
The Expert Commission appointed by Federal Minister of Economic Affairs Sigmar Gabriel proposes a 10-point plan to lay a new foundation for increasing investment, growth, and jobs in Germany. With this, both the existing investment opportunities in the public sector as well as the framework conditions for private investment should improve – including through an investment pact for municipalities, the formation of a public infrastructure institution, and a public infrastructure investment fund. In the creation of a plan to “strengthen
The Greek government yesterday proposed the transformation of part of its official debt into GDP-linked bonds. DIW Berlin has published a detailed study, which analyses how such an instrument might work. DIW Berlin considers this proposal as a constructive option to improve debt sustainability, which will ultimately foster a return to economic growth. Such a solution will help Greece accept ownership of its reform prorgramme – which is the key for a sustainable recovery of the economy. It is
This interview was first published in Les Echos on 15 September 2014.
Ancien économiste à la Banque centrale européenne, Marcel Fratzscher publie vendredi un nouveau livre «L’Illusion allemande», dans lequel il critique l’arrogance d’un pays qui se considère comme exemplaire mais dont l’économie présente aussi deréels handicaps.
Selon un rapport du Bundesrat, 20 % des autoroutes et 46 % des ponts routiers en Allemagne sont vétustes. Comment en est-on arrivé là ?
Jusqu’aux années 1980, l’Allemagne avait d’excellentes infrastructures et
This article was first published on ft.com on 27 August 2014.
The news that German output declined in the second quarter has dented the country’s economic euphoria, but only a little.
Many blame the Ukraine crisis and transient factors such as the mild winter, and believe that Europe’s largest economy remains fundamentally strong. They are wrong. Germany’s disappointing performance mostly reflects structural weaknesses, both at home and in the eurozone. Policy makers should act quickly, before the problems become further
Europe is stuck in a deep slump and facing the prospect of many more years of stagnation and high unemployment. European leaders are right in their diagnosis that a growth stimulus is urgently needed to end the crisis. But they are wrong in their solution: The Continent doesn’t need more public spending and bigger government. It needs more competition, innovation and the completion of the
It’s not a message that public opinion in Germany wants to hear, but a collapse of the EU’s troubled single currency would have devastating economic, financial and political consequences for the eurozone’s largest and most successful member.
Germans have long been among the most europhile of countries, but their mood is turning against Europe and its common currency, the euro. There’s now an openly anti-euro