Taxation and Fiscal Policy: Positioning for Growth

Germany’s next government should place economic recovery and a strengthening of the forces of growth at the center of its policy. In doing so, it makes sense to expand public investment, improve tax conditions for private investment, innovation, and employment, avoid tax increases, and, in particular, reexamine government final consumption expenditure and subsidies. It should not abolish the debt ceiling, but suspend it in 2022 and, if necessary, in 2023 until the economy has recovered from the coronavirus crisis.