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IMF Urges Germany to Enact 'Pro-Growth' Reforms
The IMF calls for reforms in innovation, digitalisation, and labour to complement Germany’s increased spending after two years of recession, aiming for sustainable growth.
- On Wednesday, the International Monetary Fund urged Germany to pair its public spending ramp-up with pro-growth reforms to secure a sustained recovery.
- Chancellor Friedrich Merz's coalition has sharply increased infrastructure and defence spending after two years of recession, responding to energy shocks, an industrial slump, and stronger competition from China in recent years.
- The fund recommended specific structural reforms to boost innovation and digitalisation, reduce labour-supply constraints, and forecast growth of 0.2 percent this year and 0.9 percent in 2026.
- There is growing unease among critics who say public spending is moving too slowly and lacks focus on reform, while Chancellor Friedrich Merz on Tuesday defended planned corporate income tax and industry power prices overhauls.
- Officials note Germany cannot pivot quickly, using large-ship metaphors to stress that prudent use of extra funds combined with reforms could secure a sustainable recovery and deepen European economic integration.
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IMF urges Germany to enact ‘pro-growth’ reforms
The International Monetary Fund said Wednesday that Germany's public spending ramp-up must be accompanied by "pro-growth" reforms to ensure Europe's beleaguered top economy makes a sustained recovery. Chancellor Friedrich Merz's coalition is making huge extra outlays on infrastructure and defence, which it hopes will spur a turnaround after two years of recession. After a visit
Coverage Details
Total News Sources21
Leaning Left2Leaning Right3Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
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