German Economists Give Negative Assessment After 100 Days of Black/Red Coalition

Economists at German universities are critical of the first 100 days in office of the Black/Red German government from an economic policy perspective. That’s according to the latest ifo Institute Economists Panel. 42% of those surveyed give the economic policy measures of the new German government a negative rating. Only a quarter (25%) are more positive. “Pension reform is urgently needed, but the measures taken by the German government are heading completely in the wrong direction,” says ifo researcher Niklas Potrafke.

“The economists surveyed are critical in particular about the expansion of the “mothers’ pension” and the lack of an increase in the retirement and pensionable age. A number of participants are also critical about the reform of the debt brake,” says Potrafke. The most positive aspect, according to the economists, is the strengthening of public investment, which is planned due to the new special fund. They are also positive about the so-called investment booster, in other words, the improved depreciation options for companies, as well as additional defense spending and the announced reduction in corporation tax.
In the short term, half of those surveyed expect a positive impact on the economy from the German government’s measures to date. Only 12 percent expect rather negative effects. By contrast, the economists are more skeptical when it comes to medium-term growth prospects: 34 percent expect rather positive prospects, while a total of 26 percent expect negative medium-term growth prospects. “The debt-financed fiscal policy will primarily boost the economy in the short term. However, market-oriented structural reforms are needed to create sustainable economic growth, yet there is no sign at present of any such reforms,” says Potrafke.

170 professors of economics participated in the 52nd Economists Panel of the ifo Institute and Frankfurter Allgemeine Zeitung in the period from July 29 to August 5, 2025.