Hynek Moravec
Some of the 88 experts surveyed think Berlin's efforts may not work because of deep-rooted structural issues and uncertainty caused by global politics.
Skeptics point out that large amounts of new borrowing might be used for social programs and other existing expenses instead of new investments. They also say that money spent on defense will not greatly increase economic growth.
"Hope that came with Friedrich Merz's announcement earlier this year has decreased in recent months," says Ben Blanchard, an analyst at Absolute Strategy Research.
"Increased government spending will naturally help support growth in Germany, but the main question is whether this will lead to a wider recovery," adds Henry Cook, an economist at MUFG Bank.
According to Nick Kounis, the chief economist at ABN Amro, Europe's biggest economy has been in a recession since 2022 and needs a big push from domestic demand to get it going again.
Lea Dofas, chief economist at TAC Economics, is not sure if "fiscal momentum can lead to long-term domestic growth," while James Rossiter, an analyst at TD Securities, expects a struggle between geopolitical uncertainty and expansionary fiscal policies.
source: ft.com
Skeptics point out that large amounts of new borrowing might be used for social programs and other existing expenses instead of new investments. They also say that money spent on defense will not greatly increase economic growth.
"Hope that came with Friedrich Merz's announcement earlier this year has decreased in recent months," says Ben Blanchard, an analyst at Absolute Strategy Research.
"Increased government spending will naturally help support growth in Germany, but the main question is whether this will lead to a wider recovery," adds Henry Cook, an economist at MUFG Bank.
According to Nick Kounis, the chief economist at ABN Amro, Europe's biggest economy has been in a recession since 2022 and needs a big push from domestic demand to get it going again.
Lea Dofas, chief economist at TAC Economics, is not sure if "fiscal momentum can lead to long-term domestic growth," while James Rossiter, an analyst at TD Securities, expects a struggle between geopolitical uncertainty and expansionary fiscal policies.
source: ft.com
