Economist Criticizes Misleading Political Promises

Marcel Fratzscher, head of the German Institute for Economic Research (DIW), has sharply criticized political parties across all spectrums for making misleading election promises. He accuses these parties of underestimating the electorate's ability to handle the truth and engaging in a bidding war of unrealistic pledges. Fratzscher's calculations suggest the Free Democratic Party (FDP) leads with promises of tax cuts amounting to 138 billion euros, primarily benefiting top earners. They are followed by the Union with 99 billion euros, and the Social Democrats (SPD) and the Greens with 30 billion and 48 billion euros, respectively.

Fratzscher highlights the significant investment needs in Germany, which require substantial state funding. He argues that annual investments of 40 billion euros in infrastructure such as roads, railways, and schools, along with 30 billion euros for the military, are crucial. These amounts, he claims, cannot be covered by current expenditures alone. He warns against viewing new debts solely in a negative light, suggesting that they can lead to improved infrastructure, quality education, and faster internet, all essential for sustained economic growth.

The economist stresses that without these necessary investments, Germany risks stagnating in terms of economic advancement. He believes that debt should be seen as a means to achieve essential public goods and services, and not merely as a financial burden. Fratzscher's stance challenges the current debate on debt brakes, advocating for a balanced approach that acknowledges the potential benefits of strategic borrowing.